Again: Fuel Prices Up!!!

Regulating Energy for Sustainable Development

PRESS RELEASE

The Malawi Energy Regulatory Authority considered recent trends in the world petroleum products prices and other macroeconomic fundamentals.

FOB Prices

Since the last pump price revision of 7^th September 2012, average FOB prices on the international market increased by 1.05% and 2.50% on diesel and paraffin respectively. During the same period average FOB prices for petrol slightly declined by 0.56%.

Exchange Rate

The exchange rate of Malawi Kwacha to the US Dollar has depreciated by 6.73% over the same period of time from K288.99 to the USD Dollar noted on 7^th September 2012 to K308.45 to 1US Dollar on 2^nd October 2012.

Resultant In Bond Landed Cost (IBLC)

A combined effect of the FOB prices and the exchange rate of Malawi Kwacha to the US Dollar has resulted in increased landed cost for petrol, diesel and paraffin by 5.66%, 7%, and 8.12% respectively.

In line with the Automatic Pricing Mechanism (APM), MERA has revised upwards the pump prices of petrol, diesel and paraffin.

Effective 6:00am on 4^th October 2012 maximum pump prices for petroleum products will be as follows;

All filling stations are therefore required to display pump prices being charged on clearly visible signage within their premises.

L.Y. ZINYEMBA

CHAIRPERSON

MALAWI ENERGY REGULATORY AUTHORITY

3^RD OCTOBER 2012