REVIEW OF JET A-1 PRICES IN THE MONTH OF JANUARY 2019

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 December, 2018 when compared to the average FOB price obtained in the Month of November, 2018 on which ruling airfield prices are based. The FOB price of Jet A-1 decreased by 15.39% from USD637.78 USD/MT to USD539.65 USD/MT.

 

EXCHANGE RATE MOVEMENT

Since the last Jet A-1 price review of 15th December 2018, the Malawi Kwacha has slightly appreciated against the dollar trading at K738.58/USD from K741.87/USD representing a 0.44% gain 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 January 2018 are below the ±5% band at both airports.

 

The MERA Board therefore resolved that effective 12th January 2019, Jet A-1 prices be reduced as follows:

 

  Current Maximum Airfield Price (MK) Recommended Maximum Airfield Price (MK) Percentage Change
KIA 866.42 809.22 -8.71
CHILEKA 837.89 759.52 -9.35
       

 

           

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

11th January, 2019                           11th January, 2019