REVIEW OF THE RETAIL PRICE OF LIQUEFIED PETROLEUM GAS (LPG) IN THE MONTH OF JANUARY 2017

Malawi Energy Regulatory Authority (MERA) considered recent trends in the world petroleum products’ prices and changes in other macroeconomic fundamentals in the local market and their impact on energy prices.

LPG PRICES ON THE INTERNATIONAL MARKET

The average Free On Board (FOB) prices for Liquefied Petroleum Gas (LPG) increased in the month of January 2017 when compared to the price observed in the month of October 2016 which formed the basis of the current retail price of LPG. The LPG price increased by 6.73% from R9.07/kg as noted in the month of October 2016 to R9.68/kg in January 2017.

EXCHANGE RATE MOVEMENT

Since the last LPG price revision on 4th November, 2016, the Malawi kwacha has depreciated against the South African Rand from K52.90/ZAR to K53.79/ZAR representing 1.68% loss of value.

RESULTANT RETAIL PRICES

The combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the South African Rand has resulted in an increase of the landed cost of LPG by 1.61%. According to the Automatic Fuel Pricing Mechanism (APM), LPG did not qualify for a price revision since the change in the landed cost was within the ±5% trigger limit.

The MERA Board therefore resolved to maintain the maximum retail price of LPG as implemented on 4th November, 2016 and shown below:                    

 

 

 

 

Current Maximum LPG Retail Price (MWK/Kg)

Recommended Maximum LPG Retail Price (MWK/Kg)

% Change

            2,066.27

               2,066.27

 

-

                  

All operators are required to sell LPG at a price not exceeding this maximum retail price.

 

SIGNED

____________________________________________

                                    RT. REV. DR. J.P. BVUMBWE

 BOARD CHAIRPERSON

  MALAWI ENERGY REGULATORY AUTHORITY

 12th January, 2017