The Malawi Energy Regulatory Authority (MERA) is noncommittal on whether pump prices will go up in the country following the rise of oil prices on the global market.
The price of Brent crude rose 1.2% to $57.80 a barrel, while US West Texas Crude climbed 0.8% to $51.90. The highest reading for both since September 2017.
The rise follows concerns over oil supplies as the Iraq government continues its move against Kurdish forces.
Speaking to YFM, MERA Public Relations Officer, Fitina Khonje said apart from prices on the international market, fuel prices in the country are determined by many factors.
“In the previous 11 months we have had scenarios where oil prices increased on the international market but this had no effect on the prices of oil here,” she said.
Khonje said factors such as the landed cost, the exchange rate and the Price Stabilization Fund (PSF) are taken into consideration.
She said the price considerations are dependent on the circumstances at the time when the prices are being determined.
“As MERA all or evaluations and assessments are dependent on what will be happening at that time when the price review meetings are taking place,” she said.
On 9th October 2017, the landed cost of fuel, petrol and diesel had increased by 10.95%, 14.52% and 15.52% respectively, however MERA decided not to increase the prices of oil and instead applied the accumulated funds in the Price Stabilization Fund (PSF) to cover the increased landed cost of the three products.