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Kenya

Cost of petrol drops marginally by 47 cents in December review

In Nairobi, diesel has gone up by Sh5.05 to Sh87.22 while kerosene went up by Sh1.40 to Sh63.56 per litre/FILE

NAIROBI, Kenya, Dec 14 – The Energy Regulatory Commission (ERC) has reduced the price of super petrol but increased those of diesel and kerosene, in its latest review to be applied for the next one month.

A litre of super petrol has gone down marginally by Sh0.47 to retail at Sh94.20 per litre in Nairobi; diesel has gone up by Sh5.05 to Sh87.22 while kerosene went up by Sh1.40 to Sh63.56 per litre.

The decline in super petrol has been attributed to improved import costs in the month of November 2016 compared to October.

Average costs for diesel and kerosene in the month of October went up by 9.80 percent and 4.41 percent respectively.

In Mombasa, a litre of super petrol will sell at Sh90.80, diesel Sh83.83 and kerosene at Sh60.71 for the next one month.

Nakuru motorists will buy a litre of super petrol at Sh94.96, diesel Sh88.16 and kerosene at Sh64.43 while in Eldoret, super petrol will retail at Sh96.14 per litre, diesel Sh89.34 and kerosene at Sh65.50.

In Kisumu, a litre of super petrol will sell at Sh96.21, diesel at Sh89.40 and Sh65.50 for a litre of kerosene.

“The commission wishes to assure the general public of continued commitment to the observance of fair competition and protection of the interest of both consumers and investors in the energy sector,” ERC stated.

The move comes even as oil producing companies decided to cut down production that will see fuel prices continue to surge going forward.

OPEC agreed to cut its collective output down to 32.5 million barrels per day (mb/d), a cut of about 1.2 mb/d from October levels.

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The move is seen to negatively impact the economy that has been enjoying the benefit of low prices.

Analysts see the move as to have negative consequences on the country’s  production costs and consequently competitiveness.

According to the Energy Regulatory Commission statistics, Kenya saved about Sh47.3 billion in petroleum import bills in the first half of 2016 owing to low global petroleum prices.

Kenya imported Sh92.7 billion worth of fuel and lubricants by June 2016 down from Sh140 billion the same period last year.

Data from the Kenya National Bureau of Statistics indicates that cheaper oil prices brought down overall import bill to Sh689.8 billion during the period under review from Sh901.8 billion same period last year.

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