Fuel prices went down effective on Friday, Malawi Energy Regulatory Authority (Mera) has announced.
Pump price for petrol went down to K441.10 per litre, from K490, representing a 9.98 percent reduction, diesel went down to K445.60 per litre from K475, representing a 6.19 percent reduction and paraffin for industry went down to K366.95 per litre from K388.00, representing a 5.43 percent decrease. However, paraffin for domestic use remains at K171 per litre.
This is the first time in many years for Malawi to respond to trends in the world petroleum products prices and other macroeconomic fundamentals, the last being during United Democratic Front (UDF) administration when Friday Jumbe was Finance minister.
In a press statement, Mera said since the last revision of fuel pump prices on May 11 this year, the FOB (Free On Board) prices on the international market declined by 10.82 percent, 10.42 percent and 10.69 percent for petrol, diesel and paraffin respectively.
Mera also said as of July 2012, the Malawi Kwacha had depreciated from K259 to K278 to one US dollar, representing a loss in value of 7.43 percent.
The energy regulatory body said the combined effects of the changes in FOB prices and the exchange rate of the kwacha to the dollar has resulted in the reduction of the landed costs by varying percentages, necessitating Mera to revise the prices.
The news of the reduced fuel prices excited motorists, with many of them saying this is the way to go.