Saturday, August 13, 2022
  • About Us
  • ImagiNATION
  • Rate Card
  • Contact Us
The Nation Online
Advertisement
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation
No Result
View All Result
No Result
View All Result
Home Business Business News

Prepare for fuel price hike—Cama

by Mcdonald Bamusi
02/09/2020
in Business News, Editors Pick
3 min read
0
Share on FacebookShare on TwitterShare on WhatsAppShare on LinkedinLinkedinShare via Email

Consumers Association of Malawi (Cama) has warned Malawians to prepare for an imminent fuel price hike following changes in basic fundamentals that determine petroleum pricing.

Speaking on Monday in Blantyre during a workshop to update journalists on petroleum pricing trends amid the Covid-19 pandemic, Cama executive director John Kapito said the recent slump in kwacha’s value and the easing of Covid-19 restrictions in most parts of the world will eventually result in Malawians paying more for petroleum products.

Fuel prices on the global market continue to rise

He said: “We know that there was no demand for petroleum products globally because of Covid-19.

“There was no activity on the global market and, therefore, the prices of petroleum products went down,

when people were importing and Malawi also [benefited] from lower prices of fuel.”

When making its price determination, Malawi Energy Regulatory Authority (Mera) assesses the combined effect of the movement of Free On Board (FoB) prices, kwacha exchange rate against the dollar and changes in local factors such as inflation.

The kwacha is currently losing value, trading at around K756 against the  dollar in authorised dealer banks.

Kapito said now that people are managing to live with Covid-19, “we have noted that there is demand where prices internationally have started going up and Malawi will be affected”.

Yesterday, Reuters reported that oil prices climbed 49 cents, or 1.1 percent, to $45.77 (about K33 750) a barrel.

The price has jumped from below $20 (about K15 000) a barrel registered in March, when the global oil industry faced its biggest demand drop in history.

Kapito said the most recent trend in global prices have so far not been reflected on the local market because Mera is cushioning the prices using the Price Stabilisation Fund.

He said: “The reduction in fuel prices was a good development for Malawi as it helped to calm the markets and we saw that benefitting everybody.

“The consumer should now prepare to pay higher prices.”

On her part, Mera spokesperson Fitina Khonje said they can only make fuel price adjustments when the regulator’s board has been instituted. The Mera board was dissolved in June this year.

“The establishment of Mera was provided for in the Act that we should have a board and we are sure that the appointing authority is well aware of this and they are working on it,” she said.

Up to the first half of this year, Mera revised fuel prices downwards three times before maintaining them at K690.50 per litre for petrol, K664.80 per litre for diesel and K441 per litre for paraffin.

In an earlier interview, energy expert Grain Malunga, who previously served as Minister of Energy and Mines, observed that the rising global oil prices could lead to fuel increases on the local market as players strive to meet importation and price costs.

Reserve Bank of Malawi Governor Wilson Banda recently said there are impending significant inflationary pressures emanating from a gradual pick-up in food prices.  n

Previous Post

Saving street children

Next Post

Tackling Covid-19 ills

Related Posts

Business News

Electricity tariff proposal to face scrutiny—mera  

August 13, 2022
Chadza: Some of the products that we import, such 
as cooking oil, are made from some of those
Business News

Plantations, legumes rank highly in Mega-farm project

August 13, 2022
Business News

Universities move to to popularise MW2063 

August 12, 2022
Next Post
Children march in protest against widespread child marriages

Tackling Covid-19 ills

Opinions and Columns

Off the Shelf

Government, through Mera, killing Escom

August 13, 2022
My Diary

Joking about food

August 13, 2022
Search Within

Pitfalls of traditional charcoal production

August 13, 2022
Bottom Up

Mindset change should target Indian-Malawians

August 12, 2022

Malawi-Music.com Top10

Trending Stories

  • Chakwera withheld delegated duties from Chilima

    Did ACB, LMC rush? 

    0 shares
    Share 0 Tweet 0
  • Covid-19 pushes Kuhes into drug manufacturing

    0 shares
    Share 0 Tweet 0
  • Mindset change should target Indian-Malawians

    0 shares
    Share 0 Tweet 0
  • Minister allays Shoprite exit fears

    0 shares
    Share 0 Tweet 0
  • World Bank suggests kwacha re-alignment

    0 shares
    Share 0 Tweet 0

  • Values
  • Our Philosophy
  • Editorial policy
  • Advertising Policy
  • Code of Conduct
  • Plagiarism disclaimer
  • Disclaimer
  • Privacy Policy
  • Terms of use

© 2022 Nation Publications Limited. All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Entertainment
  • Life & Style
    • Every Woman
      • Soul
      • Family
    • Religion
    • Feature
  • Society
  • Columns
  • Sports
  • Chichewa
  • Enation

© 2020 Nation Publications Limited. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.