By Duncan Mlanjira
After assessing the downward trend that freight on board (FOB) prices have taken on the international market, exchange rate movements and the resultant impact on the landed cost of petroleum products in the country, Malawi Energy Regulatory Authority (MERA) has reduced the pump and wholesale prices of petrol, diesel and paraffin with effect from Saturday, January 12, 2019.
This comes 28 days after the reduction of retail and wholesale prices that MERA effected on December 15, 2018.
A statement from MERA Chief Executive Officer Dr. Collins Magalasi says maximum retail pump price for petrol is now at K868.00 per litre from K923.50 on December 15; diesel at K874.00 from K949.60 and paraffin at K710.50 from K781.80.
When MERA was effecting the fuel price reduction in December, it said the average FOB prices of petrol, diesel and paraffin decreased in November 2018 by 19.60%, 16.09% and 13.63, respectively, when compared to the averages obtained in the month of October, 2018 used in determining the ruling pump prices.
“Since the last review of the In Bond Landed Cost (IBLC) of petroleum products in November 2018, the Malawi kwacha depreciated by 0.503% trading at K741.87/USD from K738.15/USD.
“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,” MERA had said.