Malawi’s fuel prices are lower than the average of global prices in the period between August and November, a global patrol price portal has shown.
According to the globalpetroprices.com, the average value for Malawi during that period was 908.77 Malawian Kwacha with a minimum of 888.00 Malawian Kwacha on 13-Aug-2018 and a maximum of 932.50 Malawian Kwacha on 08-Oct-2018.
“For comparison, the average price of gasoline in the world for this period is 1,170.67 Malawian Kwacha,” says the website.
The website says as a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices.
One notable exception is the U.S. which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline.
It says all countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different.
On its ranking of fuel prices, Malawi fuel price is cheaper than in the price in 63 other countries around the world including Zambia, Zimbabwe, Germany, Denmark, Spain, Switzerland and Italy. Malawi went two years without fuel price adjustment until September 2018.
The global fuel price has kept rising in the past three months leaving Malawi Energy Regulatory Authority with no choice but to also adjust the price of the fuel on local pumps.
The fuel price adjustment comes on the same day the IMF Executive Board has announced that Malawi’s economy has over performed in a some indicators and that that future of the economy looks positive.