Fuel prices drop for the first time in 4 months

Photo Credit: businessdailyafrica.com

The Energy Regulatory Commission has reviewed pump prices downwards for the first time in four months.

Motorists in Nairobi are set to enjoy a KSh3.74 drop for prices on petrol which will now sell at Ksh91.39 while Diesel users will enjoy a KSh2.05 drop to KSh82.46 from 15th September to 14th October as per the new revisions by the commission.

Kerosene users will also spend less as retail prices also dropped by KSh3.38 per litre to KSh59.10.

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The Commission attributed the drop to a decrease of the average landed cost of imported fuel, which saw the cost of super petrol drop by 8.86% to $475.48 per ton in August from $521.72 per ton in July, while the landing cost of diesel dropped by 5.95% to $441.19 per ton from $469.10 per ton and that of Kerosene dropped by 8.52% to $451.77 from $493.86 per ton.

Fuel users in Mombasa will enjoy the lowest rates at KSh87.99 per litre on super petrol, Ksh79.08 per litre on Automotive Diesel and KSh56.27 on Kerosene, while those in Kisumu will part with Ksh93.42 per litre for super petrol, KSh84.65 for Diesel and Ksh61.06 per litre for Kerosene.

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The drop in prices comes after the Kenya Institute for Public Policy Research and Analysis urged the Energy Regulatory Commission to revise the pricing formula it uses to set pump prices saying some of the pricing components, such as charges associated with the Mombasa Oil Refinery which was shut down in 2013, were absolute. The fuel pricing formula has not been reviewed since 2006.

By: Humphrey Ngugi   H_NGUGI

@biznewsKE

editor@biznews.co.ke

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