Malawi Energy Regulatory Authority (Mera) has maintained fuel prices for the third time in a row since November 2019.
A statement released by the authority on Saturday shows that the development was necessitated by stability of the Kwacha against the dollar coupled with insignificant changes on the commodities landing costs.
The statement is signed by Mera Chief Executive Officer, Collins Magalasi, and its Chairperson, Joseph Bvumbwe.
It indicates that in January 2020, Free on Board (FOB) price of petrol and paraffin increased by 1.02 percent and 6.17 percent respectively, while the price of diesel decreased by 0.61 percent when compared to FOB prices which were applied when determining the ruling prices.
“Since the last In Bond Landed Cost (IBLC) review in November 2019, when pump prices were last revised, the Malawi Kwacha has depreciated by 0.24 percent to K743.81 to a dollar from K742.01 to a dollar.
“Mera assessed the combined effect of the movement of the FOB prices and exchange rate of the Malawi Kwacha to the United States Dollar as well as changes in local factors that determine the maximum pump prices,” reads the statement in part.
It further says. “It was noted that the landed cost of petrol and paraffin increased by 0.92 percent and 4.86 percent, respectively while the landed cost of diesel decreased by 0.19 percent. Therefore, in line with the APM, the Mera Board resolved to maintain the retail prices of petrol, diesel and paraffin.”
Malawi uses the Automatic Pricing Mechanism(APM), which require changes in the products landed costs to be over plus or minus five percentto trigger a price adjustment.
Petrol is still selling at K930 per litter, diesel is at K924 per litter while paraffin is at K710.50 per litter.