Bicycles, the commonly used mode of transport in Malawi
It is now official. Tariffs for both fuel and electricity have now been adjusted upwards. The Malawi Energy Regulatory Authority (Mera) has announced the increase in prices with effect from today, 9 November 2012.
A statement released by Mera says petrol is now at K606.30 (€1.50) per litre up from K539 per litre while diesel will now be sold at K597.40 (€1.49) from K521.90 and paraffin is at K509.90 (€1.27) per litre from K434.30 for industrial use and for domestic use it remains at K171.
On electricity, the authority says since the May 2012 adjustments of electricity tariffs by 63.52 percent based on the Automatic Tariff Adjustments of Electricity Tariffs (Ataf), both inflation and exchange rate have continued to deteriorate.
It therefore indicated that the electricity average price has been adjusted upwards from an average of K16.05 per kilowatt hour to K22.78 per kilowatt hour as the maximum.
“The exchange rate has moved from 255/US$1 as was recorded in May 2012 to K309.75901 as registered in October 2012. Inflation has more than doubled from 11.46 to 25.5 percent over the same period.
“The combined effect of the movement of the exchange rate and inflation has negatively impacted on Escom’s financial position. Escom has to raise more money in local currency to meet existing foreign currency obligations for its suppliers and lenders,” the statement signed by Mera Chairperson Lyton Zinyemba says.
Though the upward adjustment of fuel may negatively affect people in the rural areas, many people from the villages use bicycles as their means of transport as observed today when the Coordinator of Get Up Stand Up, met farmers who will receive fertilizers for their fields.
Ironically though, Malawi does not manufacture bicycles!
By Web Office