The newly constituted Malawi Energy Regulatory Authority (MERA) board will this week announce a fuel price hike of more than 20 percent. The hike, it is alleged, was delayed because MERA did not have a board.

It’s understood that petrol prices will be hiked to about 1500 Malawi Kwacha from MWK1,150.00 per litre.

Prices of Diesel which is at MWK1,120.00/litre and Paraffin which is at MWK833.20 per litre are also expected to go up.

The last time MERA adjusted fuel prices was in October last year. In January, the authority hinted on a fuel price rise but the hike was not implemented.

Earlier this month, MERA said increase in transportation cost for fuel and depreciation of the Kwacha meant that the pump prices qualified for an increase.

The authority noted that since the last adjustment for fuel prices in October, the landed costs of Petrol, Diesel and Paraffin had increased by 16.16%, 24.67%, and 24.71% respectively.

Under the Automatic Fuel Pricing Mechanism, pump prices qualify for an adjustment when the landed costs of petroleum products move beyond the ± 5% trigger limit.

MERA said earlier this month that once a new MERA board is appointed by President Lazarus Chakwera, it would look into the fuel prices.

“The MERA Board, when instituted, will consider the changes in the landed costs and other economic factors to determine appropriate prices of the petroleum products,” the authority said in its statement.

Chakwera this week appointed a new MERA board which is chaired by Reckford Kampanje while Innocencia Chirombo who has been retained is vice chairperson. Members include Lameck Nchembe and Ulemu Kambwiri.

Source Link

Let us know what you think of this article and remember to add us on our facebook and follow us on our twitter. Come back daily for more Malawi business news.

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

The post Tonse Alliance to hike fuel prices this week – appeared first on Business Malawi.