Mera Sensitizes Media On Fuel Pricing Mechanism

Malawi Energy Regulatory Authority (MERA) has underscored the need for the media to be equipped with knowledge on fuel pricing in the country.

Director of Economic Regulations at MERA, Patrick Uka, said this in Lilongwe during a media training on fuel pricing and related issues, which the energy regulator held in collaboration with the Ministry of Information and Digitalization.

Uka said the media is critical in enhancing understanding on operations of the regulator in fuel pricing mechanisms.

"There is a knowledge gap in the media on how fuel prices are effected, starting from international to national pricing," he said while emphasizing on Automatic Pricing Mechanism (APM), which ensures prices of fuel are uniform and sustainable.

"The mechanism operates automatically to ensure that local prices reflect the movement of Free on Board (FOB) oil prices on the international market.

"There are different elements that go into the price of fuel from costs at the port to transportation until they reach at the point of destination".

Uka added that Mera performs uniform pricing as compared to other countries where fuel prices differ according to locations.

Uka further said MERA is planning to work on the levies as the Price Build Up is loaded since the regulator is still paying some parastatals that graduated, citing Malawi Bureau of Standards (MBS) which can now operate without fuel levy.

In his remarks, Director of Information, Arthur Chipenda, commended MERA for engaging the media on issues of national importance, especially the country's fuel pricing mechanism.

"The media should indeed be knowledgeable on how the pricing of such strategic commodities are done so that they disseminate correct information to the nation," he said.

Malawi adopted APM in 2012 to ensure sustainability of fuel prices.

This article originally appeared on Nyasa Times