COVID19-MERA Cuts Fuel Prices Reacting to Global Reduction
The Malawi Energy Regulatory Authority has reduced pump fuel prices effective Saturday 4th April 2020.
In a statement signed by MERA board chairperson Reverend Dr Joseph Bvumbwe and Chief Executive officer Dr Collins Magalasi, the reduction is in response to reduction in petroleum products international prices as well as a directive by president Peter Mutharika.
The statement released by MERA on Saturday 4th April 2020, the regulatory body has reduced prices of petrol by 16.13 percent, diesel by 13. 17 percent and parafin by 9.71 percent respectively effective 4th April 2020.
"These things are linked, when you look at the timing, normally this is not the time that we would announce new prices, it would have been next week but we have also responded to the directive by the President," said Dr Magalasi.
The new recommended pump price for petrol is 780 kwacha per litter from 930, diesel is at 765 kwacha per litter from 887 kwacha while Parafin is at 625 per litter from 693 Kwacha 60 Tambala.
MERA has asked stakeholders including the transport sector to consider reducing transport costs.
On Saturday president Peter Mutharika also ordered MERA to reduce fuel prices to cushion the economic pressure citizens are facing as a result of COVID19 pandemic.
Meanwhile some people in Zomba city have hailed government for reducing the fuel prices but have asked business operators such as minibus and tax operators also to reduce their prices.
So far Malawi has 4 confirmed cases of corona virus three recorded in Lilongwe and one in Blantyre.
In addition to the shock from COVID-19, the breakdown in negotiations between Oil Producing and Exporting Countries (OPEC) and its allies has led to what will likely be a persistent collapse in oil prices, a major decline in 19 years.
Globally crude is selling at around $20 or about K18 thousand per barrel.