Mera reviews fuel import strategies

The Malawi Energy Regulatory Authority has said it is reviewing fuel importation strategies to ensure stability in supply of petroleum products and its prices. He added that, in the interim, the authority is working with the Reserve Bank of Malawi and the Ministry of Finance, which are responsible for sourcing foreign exchange for importing the commodity.

The Malawi Energy Regulatory Authority (Mera) has said it is reviewing fuel importation strategies to ensure stability in supply of petroleum products and its prices.

Mera Chief Executive Officer Henry Kachaje told journalists last week that the authority is reviewing possible ways of reducing the amount of money the country spends when importing fuel.

“We are doing a complete review of the whole price build-up; we are analysing the whole structure of how petroleum products pricing is done.

“Once we are done, we will submit our findings to a presidential taskforce and they will recommend how we move forward,” Kachaje said.

He added that, in the interim, the authority is working with the Reserve Bank of Malawi and the Ministry of Finance, which are responsible for sourcing foreign exchange for importing the commodity.

The country uses a Free on Board system of petroleum product purchase where it assumes liability for the product soon after purchase.

Debate has ensued lately over efficiency and effectiveness of the weather compared to the Cost Insurance and Freight System where liability is assumed upon delivery of products.

Commentators have also rated the option to engage foreign companies to ferry the commodity into the country as a major contributor to the elevated cost of fuel.

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