A call by Vice President Saulos Chilima last month to Malawi Energy Regulatory Authority (MERA) to further reduce fuel prices is bearing fruits as the fuel regulatory body has announced that pump prices of fuel have been revised downwards.
During a media briefing in Lilongwe on April 8, 2020 Chilima requsted MERA to further slash downwards the price of fuel as global prices of the petroluem products had reduced signifacantly due to the Coronavirous pandemic.
” I am calling on MERA to further reduce the price by passing all the decrease in landing cost to consumers at least for this period until the Covid-19 and its effect on economy and livelihoods subside.”
“When the decrease in landing cost is fully passed to consumers, the pump price per litre will be K623 for petrol, K704 for diesel and K505 for paraffin,” Chilima had said.
Chilima had said the fuel reduction announced by MERA last month was not enough as it showed that government has passed only 50 percent of the global fuel price reduction to Malawian consumers.
The Vice President had implored government that in this Convid-19 crisis time, it was imperative for government to care for its citizens by reducing the fuel prices further after taking into account the landed price of petroluem products and that the exchange rate has remained stable for now.
Chilima said a statement issued by MERA last month had shown that decline for landing cost of petrol, diesel and paraffin is 33.04%, 20.61% and 27.18% respectively.
He said this gave an average landing cost decline of 26.94%.
‘”The statement further shows that pump prices for petrol, diesel and paraffin have declined by 16.13%, 13.75% and 9.71% respectively. This gives an average decrease of pump price of 13.20%. This means that MERA has transferred only half (50%) of the benefits of the decrease to consumers,” Chilima had said.
Chilima’s calls have come to pass as MERA on Wednesday announced reduced fuel prices for the month of May after the review of prevailing factors that contribute to the pump price build up in the country and globally.
The new pump prices are petrol K690.50 from K780, diesel is at K664,80 down from K765 while parrafin will be selling at K441.70 from K625.00.