CAMA WARNS FOR FUEL PRICE HIKING

The Consumers Association of Malawi (CAMA) has warned Malawians on a prospective rise of fuel prices which could be as a result of fluctuation of prices at international market.

The Association said the impact of the hiking on local prices could be in the medium to long term.

Kapito - MERA board need to be appointed soon

CAMA executive director, John Kapito said when updating journalists on petroleum pricing trends amidst Covid-19 pandemic that the demand for petroleum products is now increasing globally as countries are loosening their restrictions.

He said, : "We have noted that on the international market the price of oil has been increasing as economies begin to open up after Covid-19 lockdowns. Again we have noted that the Kwacha has been falling, definitely they would have to increase fuel prices anytime".

He then appealed to President Lazarus Chakwera to be quick in appointing a board for the Malawi Energy Regulatory Authority (MERA) stressing that the only reason prices are not moving up now may be because MERA does not have a board.

MERA board was dissolved in June this year and during the first half of the year, fuel prices have been revised downwards to K664.80 per litre of diesel, K690.50 per litre of petrol and K441 per litre of paraffin.

For a long time, fuel prices have been cushioned by the price stabilisation fund which Kapito said is the reason most recent trend in global prices have not been reflected on the local market.

" Any fuel  price hike would hurt customers but when it is gradual, the pain is less. Again, we don't want  a repeat of a situation which we had in 2012 where we were all sleeping at filling stations because one person, a politician, had made a decision to sell the fuel at less than the price of importation ". Kapito said.

Since March, when the global oil industry faced the biggest drop in demand, prices have developed from below 20 dollars which is about K15,000 a barrel.

Recently, Reuters reported that oil prices edged higher as better than expected and rose 45 cents to 45.58 dollars which is about K33,750 a barrel.