Fuel prices have been reduced by an average 2.78 percent on account of movement in world oil prices and the appreciation of the kwacha raising hopes of a decline in inflation.
Malawi Energy Regulatory Authority (Mera) in a press release signed by its chairperson Lyton Zinyemba, published on its website on May 10, said effective 6am on May 9, maximum pump price for petrol was reduced by 2.88 percent to K694.30 (about $1.73) per litre from K714.90 (about $1.78). Maximum price for diesel is K677.20 (about $1.69) down by 2.40 percent from K693.80 (about $1.72) per litre while industrial paraffin has been reduced by 3.08 percent to K595 (about $1.48) from K613.00 (about $1.53) per litre. The maximum price for domestic paraffin was maintained at K171 (about $0.42) per litre.
“Since the last pump price revision of March 12 2013, FOB prices for petrol, diesel and paraffin decreased on the international market. During the same period, the kwacha has appreciated against the dollar. This represented gain in value of 6 percent.
Mera also revised industry margins for oil marketing companies, retail margins for service station operators, distribution margins and road freight rates for fuel tanker operators to enable them cover their operational costs,” reads the statement in part.
Mera adds that a combined effect of the movement in FOB prices and the exchange rate of Malawi kwacha to the dollar have resulted in a decrease in the landing costs for petrol, diesel and paraffin by 13.22 percent, 10.14percent and 9.54 percent respectively.