Malawi Energy Regulatory Authority (Mera) has maintained fuel pump prices at present levels which means motorists can have a sigh of relief as the price of petrol remains at K788.30 per litre while diesel and paraffin will also be sold at K766.90 and K609.80 per litre, respectively.
In a statement issued on yesterday, Mera board chairperson Joseph Bvumbwe said the average Free on Board (FOB) prices of petrol slightly declined while FOB prices of diesel and paraffin increased when compared to averages obtained in May which have been used to determine the current prices.
“The FOB price of petrol decreased by 0.11 percent while diesel and paraffin prices increased by 6.37 percent and 6 present respectively in the month of June when compared to FOB prices obtained in May 2016 attributed to declining production from other countries,” reads the statement in part.
Mera said according to Automatic Pricing Mechanism (APM), only diesel qualified for an upward price adjustment since the landed cost increase beyond the plus or minus five percent threshold to trigger price change.
However, considering the low premiums offered by suppliers in the 2016/17 supply contracts that resulted in lower landing costs for petroleum products, the energy body said it resolved to cushion the increase in the landed cost paraffin and petrol through the price stabilisation fund (PSF). n