Authorities in Malawi have said that they are preparing for the introduction of a new fuel price setting tool that will provide assistance to companies operating at a loss because of difficult market conditions. The Malawi Energy Regulatory Authority has said that the new price mechanism, called the APM, will allow companies to collect compensation within a threshold of plus or minus 5% of the current market price, and that the conditions under which they operate will be reviewed on a monthly basis.
The Malawian government has said that it is committed to finding a stable pricing regime at which the industry can operate. While the new assistance will mean a better deal for retailers, it will also mean that prices of diesel and petrol will have to be revised upwards, to reflect the true cost of importing the fuels. The energy authority argues that the APM will provide much needed confidence to industry stakeholders.
PetrolWorld 25092012