REVIEW OF JET A-1 PRICES IN THE MONTH OF DECEMBER 2018.

BACKGROUND

Malawi Energy Regulatory Authority (MERA) considered recent trends on the international oil prices and changes in other macroeconomic fundamentals on the local market and their impact on Jet A-1 airfield prices.

 

JET A-1 PRICES ON THE INTERNATIONAL MARKET

The average FOB price for Jet A-1 decreased in November, 2018 when compared to the average FOB price obtained in the Month of September, 2018 on which ruling airfield prices are based. The FOB price of Jet A-1 decreased by 10.50% from USD712.61 USD/MT to USD637.78 USD/MT.

 

EXCHANGE RATE MOVEMENT

Since the last Jet A-1 price review of 7th October 2018, the Malawi Kwacha has depreciated against the dollar trading at K741.87/USD from K733.95/USD representing a 1.08% loss in value.

 

Jet A-1 PRICES

The MERA Board considered the combined effect of the movement of the Jet A-1 FOB prices and exchange rate of the Malawi Kwacha to the US Dollar as well as changes in local factors that determine the Jet A-1 prices. The MERA Board noted that Jet A-1 qualified for a downward price adjustment since the In Bond Landed Cost (IBLC) changes in December 2018 are below the ±5% band at both airports.

 

The MERA Board therefore resolved that effective 15th December 2018, Jet A-1 prices be reduced as follows;

 

All operators are required to sell Jet A-1 at prices not exceeding these maximum Jet A-1 prices.

 

 

SIGNED

                                                                     

Rt. Rev. Dr. J.P. Bvumbwe                                                                                    Dr. Collins Magalasi

BOARD CHAIRPERSON                                                                                         CHIEF EXECUTIVE OFFICER

14th December, 2018                                                                                           14th December 2018