BLANTYRE--Malawi motorists will start paying one litre of petrol at K570.20 from Thursday, October 4, from K539 since the last hike in September, representing a 5.79 percent.
Saying that this was this was in line with the Automatic Pricing Mechanism (APM), the Malawi Energy Regulatory Authority -Mera-said in a statement that diesel has jumped from K434.30 a litre to K469.90, an 8.20 percent increase.
Paraffin for the industry will now be selling at K469.90, from K434.30, an 8.20 percent increase, while paraffin for domestic and which is used by millions of poor villagers, remains at K171 per litre.
Mera said that it had considered recent trends in the world petroleum products prices and other macroeconomic fundamentals to raise the prices.
"Since the last pump price revision of 7th 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%," Mera said.
Mera said 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 7th September 2012 to K308.45 to 1US Dollar on 2nd October 2012.
"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," it said.
"All filling stations are therefore required to display pump prices being charged on clearly visible signage within their premises, said the statement, signed by L.Y.Zinyemba, chairperson of Mera.
Scarcity and hikes of fuel in Malawi are a politically and economically sensitive issue because transport, food and services are also raised, biting the ordinary poor hard.
(c) The Maravi Post 2012. Reproduction without acknowledgement prohibited