While saying the marginal change is a welcome move, consumer watchdog Cama urges caution on the part of public
The Malawi Energy Regulatory Authority (Mera) Friday announced a downward adjustment in petrol prices from K1999 to K1946 while maintaining prices of diesel and paraffin at K1920 and K1236 respectively.
The petrol reduction represents a 2.63 percentage drop and is in line with the Automatic Pricing Mechanism (APM), whereby petroleum prices qualify for adjustment when change in landed cost is beyond plus or minus 5 percent band.
Kachaje said since the last review in June 2022 when pump prices were last revised, the Kwacha has remained relatively stable; trading at K1,0367.24 against the US Dollar.
“Oil prices took a downward trend in July mainly due to fears of a global recession that has affected demand and the intervention taken by US Government as they released stocks from their strategic fuel reserves to support the supply side in the market,” he said.
Commenting on the matter Consumers Association of Malawi (Cama) Executive Director John Kapito said Malawians should not celebrate the reduction just yet, arguing the international market keeps fluctuating.
“The international market is already reacting now to prices. However, one commodity has seen one price reduction is worth noting. Europe is getting into winter and slowly prices will go up and our kwacha is depreciating fast and that will affect the prices of fuel but this reduction is so minimal to celebrate,” he said.
In June this year, prices were adjusted upward; Petrol was hiked from K1380 to K1999 representing 44.92 percent, Diesel from K1470 to K1920 representing 30.61 percent and paraffin from K956 to K1236 representing 29.29 percent.