Pump prices for fuel have gone up effective 6am this Friday in line with the automatic pricing mechanism (APM), the Malawi Energy Regulatory Authority (Mera) announced last evening.
Following the review, the new pump price for petrol is K485.60 per litre, up from K441.10 per litre, representing a 10 percent increase. Diesel is now selling at K475 per litre from K445.60 per litre, representing a 6.6 percent increase whereas paraffin will now be selling at K390 from K367 per litre, representing a 6.27 percent increase.
In a press statement, Mera said it considered recent trends in the world petroleum products prices and other macroeconomic fundamentals, such as the exchange rate of the kwacha against the dollar.
â€œSince the last pump price revision of 6th July 2012, the FOB [free on board] prices on the international market increased by 8.562 percent, 6.33 percent and 6.34 percent for petrol, diesel and paraffin, respectively,â€ reads the statement signed by Mera board chairperson Lyton Zinyemba.
The price adjustment is also reflective of the exchange rate of the kwacha to the dollar, which has depreciated by 2.15 percent over the same period from K278 to K284 as of August 6 2012, according to Mera.
The statement added that a combined effect of the FOB prices and the exchange rate of the kwacha to the dollar have resulted in increased landed cost for petrol, diesel and paraffin by 8.05 percent, 6.47 percent and 6.32 percent, respectively.
In light of the new prices, Mera is advising all retail outlets to display the pump prices on clearly visible signage within their premises.
Last month, Mera reduced fuel prices in line with the APM for the first time since February 2009 when prices went down from K251.20 per litre of petrol to K213.50 while diesel dropped to K199.30 from K234.50 and paraffin from K165.30 to K132.20.
Last monthâ€™s price reduction caught retailers unawares, with many protesting that Mera did not properly communicate the changes. Some retailers continued to sell at old prices, a development that saw Mera closing down the outlets.
Despite the price reduction for fuel, many service providers did not adjust downwards their prices. It was mostly operators in the transport sector who reduced prices, notably bus fares.