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Fuel prices go down by 10 percent

9 July 2012 Zodiak Radio

Fuel prices in Malawi have gone down by about 10 percent effective Thursday midnight, a result of automatic pricing mechanism introduced by the government recently.

This mechanism allows fuel prices to adjust according to the strength of the kwacha against the US dollar as well the fluctuation of global fuel prices.

Following the adjustment petrol is now at K441.10 from K490 per litre. Diesel is at K445.60 from K475.

Paraffin for domestic use has remained at K 171 per litre, while that for commercial use has gone down to K366.95 from K388 per litre.

The last pump price revision, an upward, was done on May 11, 2012.

The use of the automatic fuel pricing mechanism is a departure from a fixed price control system which the authorities say was hard to maintain in the wake of the country’s financial problems.

Malawi has been facing a chronic shortfall of foreign currency due to bad policy implementations during the Mutharika's reign, resulting in reduced balance of payment reserves.