Last week, Economics Association of Malawi (Ecama) questioned the Malawi Energy Regulatory Authority (Mera)’s recently revised fuel prices. Another development has come up, as PressCane Limited, has faulted the local ethanol pricing model, saying it is constraining its return on investment.

PressCane, an ethanol producing company, queried that fuel should cost 20% lower than petrol, opposing the current price of $0.80 per litre, which the firm believes must be around $1.14 per litre. PressCane General Manager, Christopher Guta, said the prices are determined by the inbound landed price of petrol which stands at K658 per litre. Petrol is being sold at K868 per litre, diesel at K874 per litre and paraffin at K710.50 per litre.

Concerning the last price revision, Mera Chief Executive Officer, Collins Magalasi, justified it, 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.”