Disclosing the development, representatives of the Malawi Energy Regulatory Authority (MERA) say this is because international prices of fuel dropped significantly in the month of September.

This is compared to the ruling average prices obtained last April on which the current fuel prices are based.

Malawi uses the Automatic Fuel Price Mechanism (APM), which is dictated by the performance of major foreign currencies against the Kwacha.

Many economists had predicted that pump price will go up due to the slide of the Kwacha against the United States dollar.

According to the statement signed by MERA chairperson Dingiswayo Jere, the Malawi Kwacha continued to depreciate during the period under review which could have resulted in Diesel prices going up under Mechanism.

 
“The MERA board resolved to cushion the impact of the increase in the landed cost of diesel through use of the price stabilization fund” said Jere.

As it stands, petrol is at MK723.60 per liter while Diesel is maintained at K734.60 per liter and Paraffin is still at K633.20 per liter.