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Government has distanced itself from speculation that it is determined to scrap off the Automatic Fuel Pricing Mechanism.
The statement comes days after economists warned government against reversing policies that were formulated by its predecessor; People’s party such as free floatation exchange rate and the removal of subsidies such as on prices of commodities, specifically fuel.
The Joyce Banda administration introduced these reforms 2012 to stabilize fuel availability, erratic during the Bingu regime’s last days.
It was believed, by economists that the commodity was fetching lower prices domestically –creating unnecessary demand in the process –which made a call for subsidy removal valid.
Thus government introduced automatic fuel pricing mechanism whereby the pricing is determined by the strength of the local currency in relation with international pump price.
However, newly appointed finance and economic planning minister says government has no immediate plan to scrap-off the scheme until it conducts a review on its merits and demerits.
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