Mera maintains fuel prices

Post was last updated: January 11, 2016

The Malawi Energy Regulatory Authority (Mera) has maintained fuel prices despite continued depreciation of the local currency, the kwacha, among other challenges facing the economy.

For the past months, the energy regulator has maintained pump prices in the country as global prices have been dropping.

Mera, in a published statement signed by its Board Chairperson Dingiswayo Jere said it has resolved to maintain the pump price to adjust the impact through the price stabilization fund levy.

The development means the price of petrol of petrol remains at K711.90, while diesel and paraffin prices remain K732.20 and K573.10, respectively.

In the statement, the regulator says combined effect of the movement of Free on Board (FOB) prices and exchange rate of the Malawi Kwacha to the US dollar has, however, resulted in changes of landed cost of Petrol, Diesel and Paraffin.

However, all the three products did not qualify for a price adjustment since their respective landed cost changes were within five percent trigger limits.

The statement says the adjusted margins on the other hand were resulting in price increases on the three products.

Motorists we spoke to around Blantyre city say the option gives a sigh of relief as currently most Malawians are already hardhit by the ever dwindled buying power.

“At least this give us some little breathing space as the economy is already in bad shape and the cost of living is also high,” said a minibus driver who only identified himself as James.

Malawi adopted the automatic fuel pricing mechanism in 2012 where prices of the commodity are determined by market forces and are revised periodically.

(Visited 94 times, 94 visits today)

Let us know what you think of this update and remember to add us on our facebook and follow us on our twitter. Make sure to come back daily for more Malawi business news updates.

Quick Links: Malawi Banking News | Malawi Technology News | Download Business eBooks | Ten Signs You Are An Entrepreneur | What is a Managing Director?

Today’s top business story: Top Commercial Banks In Malawi

Source link