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|
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
11th January, 2019 11th January, 2019