A car being fueled at a petrol station in Nairobi. (Photo: Courtesy)
Fuels prices have dropped marginally, giving consumers a slight reprieve for the next one month.
In its monthly retail price capping review, the Energy Regulatory Commission (ERC) cut the price of super petrol by Sh1.64, while diesel and kerosene reduced by Sh2.43 and Sh2.48 respectively.
A litre of super petrol will now retail at Sh97.10 in Nairobi, while diesel will sell for Sh84.46 and a litre of kerosene will go for Sh62.56 for the next one month.
ERC said the reduction was due to decline in the weighted cost of refined petroleum products imported into the country in June. The landed cost of the three products reduced by about five per cent on average.
“The changes in this month’s prices have been as a consequence of the average landed cost of imported Super Petrol decreasing by 4.68 per cent from $564.53 per tonne in May 2017 to $538.09 per tonne in June 2017,” said ERC in a statement.
“Diesel decreasing by 5.69 per cent from $481.30per tonne to $453.93 per tonne and kerosene decreasing by 5.45 per cent from $506.26 per tonne to $478.65 per tonne.”
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The cost of crude oil in the global markets also went down in the month of June, when a barrel of oil averaged $47.30, down from $51.45 in May. The decline was also on account of relatively stable local currency against the US dollar. In June, the shilling traded at Sh103.59 against the dollar, a slightly weaker position when compared to Sh103.31 in May.
The energy industry regulator attributed increased efficiency in the handling and movement of petroleum products through the pipeline as among the factors that led to reduction in pricing.
“In this month’s pump prices, the actual pipeline loss factor used was 0.02 per cent, which is a reduction from the previous factor of 0.25 per cent. Accordingly, the savings per litre on account of reduced pipeline loss are as follows: super petrol (Sh0.19), diesel (Sh0.16) and kerosene (Sh0.12),” said the Commission.