, NAIROBI, Kenya, Dec 14 – Fuel prices have gone down by at least Sh5 per litre in the latest review by the energy regulator marking the first time in 12 months that a reduction of such margin has been registered.
According to the Energy Regulatory Commission (ERC), a litre of super petrol in Nairobi will retail at Sh119.06 for the next one month down from the Sh124.13 that it has been selling at from November 15.
“Taking into account the costs of imported products and products refined locally, the overall result is that the maximum allowed price of super petrol in Nairobi decreases by Sh5.07 per litre,” a statement from the ERC read.
The price of diesel has declined by Sh3.33 per litre to Sh110.97 while that of kerosene has gone down by Sh4.13 to Sh90.74.
Motorists in major towns such as Mombasa, Nakuru, Kisumu and Eldoret will purchase the commodity (super petrol) at Sh115.79, Sh119.62, Sh120.79 and Sh120.73 respectively.
The reduction had been expected after Energy Permanent Secretary Patrick Nyoike hinted last week that the prices would come down by between Sh3 and Sh5 per litre.
ERC Director General Eng Kaburu Mwirichia said the new prices reflect a dip in the cost of the products’ importation as well as the strengthening of the shilling.
Although the price for Murban crude oil lifted between October 2011 and November 2011 rose by five percent to $1059.18 per Metric Tonne, the increase was offset by a decline in the average landed cost of super petrol and diesel products.
“The average landed cost of imported Super Petrol decreased by one percent from $1069.44 per Metric Tonne in October to $1059.18 while the average landed cost of imported diesel decreased by 1.4 percent to $969.10 per Metric Tonne,” noted Mwirichia.
During the same period, the exchange rate regime stabilised from Sh101.96 against the dollar in October to Sh93.64 to the greenback.
“In the last one month, the local currency has strengthened relative to the US dollar and this has impacted positively on the local pump prices,” he added.
The review will be a welcome relief to motorists who have had to put up with prices that have been on an upward trend causing a public uproar and intensifying calls for the ERC to be disbanded.
As the shilling continues to firm against major world currencies and particularly against the dollar, many motorists will be hoping that these benefits will be passed on to them and reflected at the pump stations.
On Wednesday, the local unit rallied to Sh87.29 to the greenback, which is the strongest it has been since July 2011.
Should the international crude oil prices stabilise and the cost of importation decline, then consumers can expect to see further reductions in the near future.