Review Of Prices Of Petrol , Diesel And Paraffin , August 2017

By | August 29, 2017

Review Of Prices Of Petrol , Diesel And Paraffin , August 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 prices of Petrol, Diesel and Paraffin decreased in July 2017 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 declined by 0.99%, 0.95% and 2.74% respectively in the month of July 2017.
EXCHANGE RATE MOVEMENT
Since the last review of the In Bond Landed Cost (IBLC) of petroleum products in November, 2016, the Malawi kwacha has depreciated by 0.06% from K733.50/USD noted at the last price review in November 2016 to K733.95/USD noted in August 2017.
PUMP 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 maximum pump prices and noted that the landed cost of Petrol, diesel and paraffin increased by 1.91%, 5.84% and 4.82%, respectively. The changes in the landed costs for diesel is beyond the ±5% trigger limit which qualifies an upward pump price adjustment for diesel.
The MERA Board resolved to maintain pump prices for all the three products and apply the accumulated funds in the Price Stabilisation Fund (PSF) to cover the increased landed cost of diesel.
Fuel pump prices have therefore been maintained as implemented on 4th November 2016 as presented below:
 
 

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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
4th August, 2017