Malawi Energy Regulatory Authority (Mera) yesterday revised downwards pump prices of diesel and paraffin by about eight percent and maintained petrol at its current price of K711.90 per litre.
According to the revised price structure, diesel will now be selling at K671.30 from K732.70 per litre while paraffin is pegged at K526.30 from K573.10 per litre.
A statement signed by Mera board chairperson Dingiswayo Jere said the average free on board (FoB) prices of petrol, diesel and paraffin dropped significantly in January 2016 when compared to ruling average FoB prices obtained in November 2015 on which the current fuel pump prices are based.
Said the statement: “The FoB prices of petrol, diesel and paraffin have declined by 14.69 percent, 38.9 percent and 35.63 percent respectively in January 2016 attributed to a supply overhang of oil on global market.”
Mera said the combined effect of the movement of the FoB prices and exchange rate of the kwacha to the dollar resulted in an increase of the landed cost of petrol by 4.75 percent and a decrease in the landed cost of diesel and paraffin by 12.69 percent and 11.83 percent respectively.
The drop will be good news as it will relieve pressure on consumers who are feeling the pinch of high cost of living due to poor economic performance.