In a statement signed by MERA’s Board Chairperson, Rt. Reverend Dr. JP Bvumbwe and Chief Executive Officer of the organisation, Dr. Collins Magalasi, in January 2019 the average Free on Board prices of Petrol, Diesel and Paraffin increased by 0.87%, 6.22% and 2.14% respectively when compared to the averages obtained in the month of December 2018 used in determining the ruling pump price.
In the same period under review, the Malawi Kwacha has depreciated by 0.16% trading at K739.78 to United States Dollar from K7.38.58 to the same currency.
The statement further disclosed that taking into account (combined effect of the movement of the FOB prices and exchange rate of Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices and noted that the landed costs of petro, diesel and paraffin increased by 0.59%, 4.08% and 1.50% respectively.
MERA’s analysis for the aforementioned price determinants, did not qualify for a price adjustment because the landed costs were within plus or minus 5% trigger limit.
Against this background, MERA resolved not to adjust fuel pump prices and urges all operators to sell petroleum prices not exceeding the recommended maximum pump prices.
Currently the recommended pump prices are as follows:
LPG Retail Price MK 2119.87
Petrol MK 868.00
Diesel MK 874.00
Parraffin MK 710.50