MERA announced that effective 22 November 2018, petrol is selling at 990 Kwacha 30 tambala from 932 Kwacha 50 tambala per litre, diesel prices have been adjusted from 935 Kwacha 60 tambala to 990 Kwacha 40 tambala while paraffin is selling at 785 Kwacha from 755 Kwacha 30 tambala per litre.
According to Chief Executive Officer for MERA Dr Collins Magalasi, Malawi’s imported fuel takes a month to arrive hence the difference in prices as compared to those of other countries.
“The difference is in that the fuel that we use in Malawi is imported and it takes a month or two to get into the country therefore the prices of last month importations were higher by 16% and we cannot sell that at a cheap rate because that means we will make a loss.
“The fuel price at the pump now is not exactly what the fuel sellers are announcing because, as a country, we use a formula known as 1 month minus one meaning that the price of fuel for last month is what is forming the price of the pump today,” explained Magalasi.
Justifying the news that there is a reduction of the price of the commodity on the international scene, Magalasi said this will form the price of fuel in Malawi next month or the month to come.
He added that there is a possibility of price reduction on fuel in the coming month if the trend on the international scene remains the same but was however quick to point out that the price of this month will determine the price of fuel in the coming months.