The Malawi Energy Regulatory Authority (MERA) has said pump prices will likely be increased once President Lazarus Chakwera institutes a new MERA board.

According to a statement released today, the increase is due to an increase in cost of transporting fuel to Malawi.

The key determinants of the landed costs of petroleum products are the exchange rate of the Malawi Kwacha against the United States Dollar and the Free on Board prices of refined petroleum products on the international market.

Since the establishment of the current maximum pump prices in October 2021, the landed costs of Petrol, Diesel and Paraffin have increased by 16.16%, 24.67%, and 24.71% respectively, according to MERA.

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.

“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 has said in its statement.

MERA spokesperson Fitina Khonje has told the local media that MERA will continue to hold the current prices due to the absence of the MERA board.

The MERA has had no board for weeks after its board resigned over the controversial appointment Henry Kachaje as MERA chief executives officer.

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 Brace for impact: Malawi to hike fuel prices – appeared first on Business Malawi.