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Pump prices up in Malawi in response to Kwacha weakness

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By Mabvuto Banda:

The Malawi Energy Authority (Mera) increased fuel prices late Monday, a move that is likely to push up commodity prices up in the country where food prices have already been on an upward spiral.

The Authority said in a statement it had increased the pump price of petrol by 7.68 percent, diesel by 9.21 percent to reflect the weakened kwacha.

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This means that with immediate effect the pump price of petrol is now going at K888 up from K824. Diesel will now be selling at K890 from K815 and paraffin.

The last time the Authority increased pump prices was 2 years ago. The price increase is partly in response to weakness in Malawi’s kwacha currency against the U.S. dollar as well as changes in the cost of importing the fuel.

“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 June 2018,” read the statement in part

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The Authority said the combined effect of the movement of import prices and the kwacha exchange rate against the dollar had increased the cost of petrol, diesel and paraffin.

The kwacha has come under pressure partly from falling export revenue from the country’s main crop, tobacco and general weakness in African currencies due to falls in commodity prices.

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