For three months in a row, the Malawi Energy Regulatory Authority (Mera) has maintained the pump price of fuel despite the kwacha losing value by 25.8 percent since the last price review in May this year.
This means that petrol will still be selling at K723.60 per litre, diesel is at K734.60 per litre while paraffin, mostly used by peri-urban and rural dwellers, is maintained at K633.20 per litre.
This may be a relief for consumers who are still feeling the impact of high cost of living characterised by high inflation rate at 22.2 percent, which eats into people’s disposable income.
Mera board chairperson Dingiswayo Jere said in a statement on Wednesday the energy regulatory body noted that the combined effect of the movement of the Free on Board (FoB) prices and exchange rate of the kwacha to the dollar has resulted in the increase of the landed cost of petrol, diesel and paraffin by 9.09 percent, 2.04 percent and 1.32 percent respectively.
“However, Mera has resolved to cushion the impact of the increase in the landed cost of petrol beyond the plus or minus five percent threshold through the use of the price stabilisation fund,” he said.