Mera mum on new fuel prices
Motorists should brace for more hard times as the Malawi Energy Regulatory Authority (Mera) is reported to have raised fuel pump prices during its monthly price review meeting held on Tuesday this week.
Sources in the oil industry familiar with the review on Wednesday confided in The Nation that Mera has recommended that petrol should be sold at K606.30 per litre, up from the current K539 per litre whereas diesel is set to rise from K521.90 to K597.40 per litre and paraffin from K434.30 to K509.90 per litre.
The sources indicated that the price hike could be effected this Friday.
Mera chief executive officer Dr. Allexon Chiwaya is yet to respond to a questionnaire from The Nation on the outcome of the monthly price review meeting.
But a Mera source confirmed the review meeting took place on Tuesday.
In July this year, Mera adopted the automatic pricing mechanism (APM) to allow full cost recovery for all fuel imports.
Under the APM, fuel pump prices are adjusted to reflect price movements on the international oil market to allow fuel importing companies to recover importation costs on real-time basis. Pump price adjustments reflect the changes in the value of In Bond Landed Cost (IBLC) of petroleum products and movements of the kwacha against the dollar. Every five percent change in either variable translates into a price adjustment either upwards or downwards.
Last month, Mera reversed an earlier announced price hike following a review meeting without giving reasons, a decision oil industry players said would cost them about K1 billion in under-recoveries.
