Fuel pump prices up

BLANTYRE (Tamandani Mwale, MalawiNewsNow)-Malawians have to dig deeper into the pocket following a decision by Malawi Energy Regulatory Authority (MERA) to hike fuel prices effective July 17, 2018.

MERA Chief Executive Officer  Dr Collins Magalasi disclosed the development on Tuesday in a statement.

According to Magalasi, petrol now will be selling MK888 per litre from MK824 per litre.

Diesel will be selling at K890.90 per litre from MK815.80 per litre while paraffin will be selling at K719.30 per litre from MK648.70 per litre.

Magalasi said MERA board decided to pass on only 50 percent of increases on pump prices to reflect the increased actual landed costs of petroleum products on the international market.

“The Board further resolved that the remaining 50% increase in landed costs be cushioned by the available funds in the PSF (Price Stabilization Fund),” reads the statement.

The Prices of fuel have not risen in Malawi for almost two years. But price will likely to push up goods and services.

Oil prices directly affect prices of goods made with petroleum products and indirectly affect such costs as manufacturing and transport.

Expensive oil is not very good for the country’s economy in the short-term. A rise in the cost of oil has a consequence of a rise in the cost of living.

Increase in fuel prices usually leads to a rise in the consumer price index. As oil prices go up or down, inflation follows in the same direction. Considering that most consumer products are transported by road, manufacturers and transporters are likely to pass the additional fuel costs to you, the consumer, making life more difficult for  Malawians, many who are wallowing in abject poverty, except a priviledged few.