APM Govt Power! Fuel Prices Not To Go Up, MERA Announces
The Malawi Energy Regulatory Authority (MERA) has decided to maintain fuel prices which were implemented in November last year.
This means that the prices remain at MK824.70 per litre for petrol, MK815.80 per litre for diesel and MK648.70 per litre for paraffin.
According to a statement issued by the regulatory body on Friday and signed by its chairperson Reverend Joseph Bvumbwe, average Free on Board (FOB) of Petrol, Diesel and Paraffin decreased in July 2017 when compared to the averages obtained in the month of October, 2016 which were used in determining the current pump prices.
“The FOB price of petrol, diesel and paraffin declined by 0.99%, 0.95% and 2.74% respectively in the month of July 2017.
“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 maximum pump prices and noted that the landed cost of Petrol, diesel and paraffin increased by 1.91%, 5.84% and 4.82%, respectively,” says the statement.
The Mera noted that the increase in landed costs for diesel qualified for an increase in prices of diesel but the regulatory body chose to maintain pump prices of all the three products and apply the accumulated funds in the Price Stabilisation Fund (PSF) to cover the increased landed cost of diesel.
MERA has since advised all operators to sell the petroleum products at prices not higher than the set prices.