Chilima urges further fuel price reduction
The country’s estranged Vice-President Saulos Chilima has urged the Malawi Energy Regulatory Authority (Mera) to further reduce fuel pump prices to mitigate the impact of the novel coronavirus (Covid-19) pandemic on the economy.
In a statement signed by press officer in the office of the Vice-President, Pilirani Phiri, the Chilima observes that the latest decline in landed costs of petrol, diesel and paraffin is 33.04 percent, 20.61 percent and 27.18 percent, in that order which gives an
average landing cost decline of 26.94 percent.
Based on these observations, he argues that the pump price per litre would be K623 for petrol, K704 for diesel and K505 for paraffin.
“I am asking Mera to further reduce the price by passing on all the decrease in landed cost to consumers at least for this period until the Covid-19 and its effect on economy and livelihoods subside,” Chilima is quoted as having said in the statement.
Last week, Mera reduced pump prices of petrol, diesel and paraffin to K690.60, 664.80 and 441.70, per litre, respectively, owing to plummeting international fuel prices, stable kwacha and the impact of Covid-19 pandemic on the economy.
Speaking earlier, Mera chief executive officer Collins Magalasi dismissed “Chilima’s price mathematics”, saying it was wrong to equate the international pricing to the local pump price.
