REVIEW OF JET A-1 PRICES IN THE MONTH OF JANUARY 2017

BACKGROUND

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

 

JET A-1 PRICES ON THE INTERNATIONAL MARKET

The average FOB price for Jet A-1 increased in January 2017 when compared to the average FOB price obtained in the Month of May, 2016 on which ruling airfield prices are based. The FOB price of Jet A-1 rose by 17.07% from USD423.46 USD/MT to USD495.75 USD/MT.

 

EXCHANGE RATE MOVEMENT

Since the last Jet A-1 price revision in June 2016, the Malawi Kwacha has depreciated against the United States Dollar trading at K733.50/USD at the time of the review from K715/USD noted in June 2016 representing a 2.59% loss in value.

 

AIRFIELD PRICES

MERA assessed the combined effect of the movement of the 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 and noted that Jet A-1 qualified for a price increase. The MERA Board resolved to maintain the maximum Jet A-1 prices as implemented on 10th June, 2016 and further resolved to use the Price Stabilization Fund to cover any importation losses.

The airfield prices have therefore been maintained as presented below;

 

Airport

Current Maximum Airfield Price(Kwacha per Litre)

Recommended Maximum Airfield Price(Kwacha per Litre)

% Change

KIA

                                   720.20

                                 720.20

 

-

CHILEKA

 

670.87

 

670.87

 

-

 

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

 

 
 

 

SIGNED

 

RT. REV. DR. J.P. BVUMBWE

BOARD CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

12th January, 2017