Economics Association of Malawi (Ecama) has expressed reservations on Malawi Energy Regulatory Authority (Mera)’s recently revised fuel prices. The organisation’s executive director, Maleka Thula expressed that the factors that determine fuel prices are pointing the opposite direction.

According to Thula, local currency’s recent stumble against most major currencies, mainly on account of demand and supply conditions in the market at a time global fuel pieces have been increasing. “With delayed opening of the tobacco market, increased demand for foreign exchange during the period and minimal election effect, the Kwacha’s performance was rather weaker than expected in the recent past.”

Mera Chief Executive Officer, Collins Magalasi, justified the recent revision, stating that the current environment did not favor an upward review of the prices. “I can confirm that, the past six months, we have not changed the prices of fuel. It was not by accident but because we had sufficient funds for stabilisation. This [money] we collected from the pubic when international prices were favourable and it is only fair that, when there is international pressure, we give back to Malawians.”

Mera recently reviewed pump and wholesale prices for Petrol, Diesel and Paraffin, announcing that the new pricing is the same as announced on 12th January 2019. In a statement, the Authority said that the resolve follows Mera Board’s assessment of FOB prices on the international market and exchange rate movements, as well as the subsequent decision to cushion the noted increase of the landed cost of the three petroleum products through the Price Stabilisation Fund (PSF).