Malawi Energy Regulatory Authority (Mera) has maintained pump prices of K788.30 per litre for petrol, K766.90 per litre for diesel and K609.80 per litre for paraffin.
In a statement issued yesterday, Mera board chairperson Reverend Joseph Bvumbwe said the average free on board (FOB) prices of all fuels declined when compared to averages obtained in May, which has been used to determine the current prices.
Reads the statement in part: “When compared to FOB prices obtained in May 2016, the FOB prices decreased by 11.6 percent, 0.53 percent and 0.92 percent for petrol, diesel and paraffin respectively.”
The energy regulator said the combined movement of the FOB prices and exchange rate of the kwacha to the US dollar resulted in a decrease of 0.47 percent in the landed cost of petrol and an increase of 8.05 percent and 7.17 percent in the landed cost of diesel and paraffin respectively.
But according to Automatic Pricing Mechanism (APM), Mera said diesel and paraffin qualified for an upward price revision since the landed cost increase beyond the plus or minus five percent of the trigger limit.
Through the Price Stabilisation Fund, Mera said it resolved to cushion the increase in the landed costs of diesel and paraffin and maintain the current prices.
Mera adopted the Automatic Pricing Mechanism (APM) in 2012, a means where by fuel pump prices are adjusted to reflect fuel price movements on the international market and pump price adjustments reflect the changes in value of In Bold Landed Cost (IBLC) of petroleum products and movements of the Kwacha against the dollar. n