REVIEW OF PRICES OF PETROL, DIESEL AND PARAFFIN IN THE MONTH OF JANUARY 2017

 BACKGROUND

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.

PETROLEUM PRODUCTS INTERNATIONAL PRICES

The average FOB price of petrol, diesel and paraffin increased when compared to the averages obtained in the month of October 2016 used in determining the ruling pump prices.

The FOB price of petrol, diesel and paraffin increased by 4.01%, 3.49% and 5.15%’ respectively in the month of January 2016 when compared to FOB prices obtained in October 2016.

 

EXCHANGE RATE MOVEMENT

Since the last review of the In Bond Landed Cost (IBLC) of petroleum products in November 2016, the Malawi kwacha has remained stable trading at K733.50 against the United States Dollar as noted on 6th January, 2017.

 

PUMP PRICES

The combined effect of the backlog of IBLC adjustment from November 2016, movement of the FOB prices and the exchange rate of the Malawi Kwacha to the US Dollar noted in January 2017, has resulted in increases of landed cost of Petrol, Diesel and Paraffin by 8.32%, 11.43% and 11.87%, respectively.

 

The MERA Board after considering the accumulated PSF balance in January 2017, has resolved to maintain pump prices by allowing the Price Stabilisation Fund to continue covering IBLC increase.

 

The pump prices have been maintained as implemented on 4th November, 2016 as presented below:

                

 

Product

Current Pump Price (MWK/Litre)

Recommended maximum pump price (MWK/Litre)

% Change

Petrol

 

824.70

 

824.70

          

-

Diesel

 

815.80

 

815.80

            

-

Paraffin

648.70

648.70

-

 

                    

 

 

 

 

 

 

 

 

All operators are required to sell petroleum products at prices not exceeding these maximum pump prices.

 

 

SIGNED

                                    ____________________________________________

 

RT. REV. DR. J.P. BVUMBWE

 BOARD CHAIRPERSON

  MALAWI ENERGY REGULATORY AUTHORITY

 12th January, 2017