Mera maintains fuel pump prices

Malawi Energy Regulatory Authority (Mera) has maintained fuel pump prices despite free on board (FOB) prices of all fuels increasing in April.

This means petrol remains at K1380 per litre, diesel K1 470 per litre and kerosene at K956 per litre.

In a statement issued on Saturday, Mera board chairperson Reckford Kampanje said diesel prices continue to skyrocket due to fears of security of supply and global supply chain disruption following the invasion of Ukraine by Russia.

He said diesel qualified for an upward price adjustment as the change in the landed cost was beyond the plus or minus five percent trigger limit.

Kampanje said: “The board, noting the marginal movements in oil prices on the world market and that price stabilisation fund [PSF] collection in the month would ably cover any cost differences, resolved to maintain fuel pump prices until the next review in June 2022.

“Mera further considered the adjustment of industry margins following an assessment of the oil business operating environment and its impact on the licensed operators. The adjustments have been implemented through the PSF in order to maintain the pump prices.”

Meanwhile, in the first quarter of this year, oil prices soared to $115.6 per barrel from $74.31 per barrel in the fourth quarter of 2021, according to Reserve Bank of Malawi data.

The increase is on account of the Russia-Ukraine war which has triggered increases in global energy, as the sanctions imposed on Russia and its allies have created supply shortages across the globe.