and petrol effective July 17 2018, putting more pressure on consumers.
Mera has announced the price hike on Tuesday and is expected to have a
squeeze on incomes as rising fuel prices threaten to prevent inflation
The cost of fuel has a significant impact on the pricing of goods and
services; hence, Malawians—already reeling from the pressure of reduced
buying power and a depreciating Kwacha—will likely be affected by the
Mera chief executive officer Collins Magalasi said in a statement that petrol has gone up to maximum retail pump from K824.70 per liter to K888.00 per liter whereas diesel is now selling at K890.90 per liter from K815.80 per liter.
Paraffin, used mostly by industry and the majority of the
poor households is now selling at K719.30 per liter from K648.70.for the
Magalasi said Mera board resolved to pass through only 50 percent of
Landed Cost (IBLC) of petroleum products on pump prices “ to reflect the
increasing actual landed costs of petroleum products on the international market.”
He said the regulatory board chaired by Bishop Joseph Bvumbwe further
resolved that the remaining 50 percent increase in landed costs be
“cushioned by the available funds in Prices Stabilization Fund.