Fuel Price Goes Up
By: Happy Arnold Soko
Motorists should brace for more hard times as the Malawi Energy Regulatory Authority (MERA) is planning to raise fuel prices due to economic hardship.
The Malawi Star’s inside source confided that MERA has recommended that petrol should be at k743.30 per litre, up from the current k711.90 per litre whereas diesel is set at k722.80per litre from k671.30 per litre and paraffin from k526.30 per litre to k580.40 litre.
Our source indicated that the fuel hike will begin this 4th Friday 2016.
The new prices are also due to Automatic Price Mechanism (APM) act adopted by MERA in July 2011 to allow full cost recovery for all fuel cost.
Under the APM, fuel prices are adjusted to reflect price movement on the international oil market to allow fuel importation companies to recover costs on a real-time basis.
Price change adjustments reflect the change in the value of In Bond Landed Cost (IBLC) of petroleum production movement and of the Kwacha against the Dollar.
Every five percent change in either variable translates into adjustment either upward or downward.