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Kenya

NOCK lowers fuel price by Sh2

NAIROBI, Kenya, Apr 26 – The National Oil Corporation (NOCK) has announced a Sh2 per litre reduction in pump prices for all petroleum products, to boost government efforts to lower the price of fuel in the country.

This will see motorists in Nairobi pay Sh109 for a litre of super petrol after pump prices touched an all time high of Sh111 a litre, following the latest revision by the Energy Regulatory Commission (ERC).

The Sh2 reduction, which took effect on April 22, will be implemented throughout the country where the State owned oil marketer is operational.

The reduction comes in the wake of the government\’s decrease of excise duty on kerosene by 30 percent and diesel by 20 percent following public outcry over the high cost of living in the country.

Although the government issued the directive on diesel and kerosene, the ERC is yet to come with a new pricing structure for the two products.

National Oil Managing Director Sumayya Athmani said the State owned marketer embarked on to reduction of fuel prices as it works towards fulfilling its mandate to stabilise prices.

"The corporation will continue seeking ways of cushioning Kenyans against high fuel prices that have triggered a sharp rise in the cost of living," Ms Athmani said.

Already, National Oil has implemented the kerosene alternative delivery channel project that has drastically cut distribution layers or intermediaries thus reducing the cost of the commodity by as much as Sh5 compared to other oil marketers.

The move by NOCK comes as other oil marketers look for innovative ways to reduce pump prices. KenoKobil introduced a Sh2 discount twice a week in an effort to woo customers.

Ms Athmani said National Oil was also in talks with oil producing nations such as Qatar and Kuwait for long-term oil importation contracts to cushion the public from rising costs of fuel.

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The government-to-government arrangement by National Oil comes amid sustained attacks by other oil marketers for failing to meet its procurement quotas. Ms Athmani said the arrangement would save Kenya from fluctuating crude oil prices.

She said the company plans to import 25 million metric tonnes annually in accordance with the 30 percent procurement quota.

The State owned oil marketer is also set to award two contracts in June for the establishment of a national strategic reserve and the construction of a second petroleum-offloading jetty.

"Another intervention is pursuing plans to import bio diesel from Brazil for blending in the country while exploration activities have been intensified," she said.

Follow us on TWITTER@CapitalFM_Kenya and the author at https://twitter.com/MjKaranja

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