Petrol, gas prices revised downwards

Cars on a fuel pump

The Malawi Energy Regulatory Authority (MERA) has reduced the price of petrol and gas in the country.

The price of petrol has been reduced from K1,999 to K1,946 representing a 7.47 percent decrease.

However, the prices of diesel and jet fuel remain the same.

On the other hand, the price of gas has also been slashed  down and will now be selling at K2,726 per kg. 

In the period from May to July, FOB decreased by 2.09 percent and the Kwacha appreciated against the Rand by 10.51 percent.

Combined effect of FOB and exchange rate: landed costs decreased by 11.80 percent.

And therefore price of Liquified petroleum gas has been reduced by 7.78 percent.

Fuel prices

MERA Chief Executive officer Henry Kachaje, said the adjustment had been made following some trends on the international market.

Kachaje said this is dictated by the Automatic Fuel Pricing Mechanism (APM).

"Under the Automatic Pricing Mechanism (APM), prices of petroleum prices qualify for adjustment when change in landed cost are beyond the ±5% band.

Making the announcement in Blantyre on Friday, Kachaje said the price adjustment will be effective midnight.

Since the last review in June 2022, when pump prices were last revised, the Kwacha has remained relatively stable trading at K1,0367.24 against the US Dollar. 

Combined effect of performance of Kwacha and FoB resulted in landed costs changes by -6.27 percent, 3.58 percent, 3.91 percent for Petrol Diesel and Paraffin respectively.