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.
Rt. Rev. Dr. J.P. Bvumbwe Dr. Collins Magalasi
BOARD CHAIRPERSON CHIEF EXECUTIVE OFFICER
14th December, 2018 14th December 2018