By Macharia Kamau
The Energy Regulatory Commission has further reduced fuel prices for the second month, but warned retail prices are likely to go up next month due to recent increases in price of crude oil.
In its monthly price-capping guide, the energy industry regulator reduced the price of super petrol by Sh1.98, kerosene by Sh0.43, and diesel per litre, attributing the marginal reduction to a stable foreign exchange rate.
In Nairobi, a litre of super petrol will go down to Sh106.48, Sh97.09 for a litre of diesel and Sh73.97 for kerosene.
The prices will be in effect between August 15 and September 14. Prices for other towns were adjusted accordingly. Oil marketing companies cannot retail their products above the ERC rates. In a statement yesterday, ERC said it is likely to review upwards the prices of the three petroleum products in September due to rise in price of crude oil.
“We have observed an upward trend in the price of crude and refined petroleum products in the international market over the last month,” said Kaburu Mwirichia director general ERC in a statement yesterday.
“This may adversely affect pump prices in subsequent price reviews,Oil prices this week hit a three-month high of over $115 (Sh9,580) a barrel; prices last seen in May this year.”
In June, a barrel was selling at an average of $97 (Sh8,150) and went up slightly in July to $101 (Sh8,450).
Last month, ERC announced one of the biggest fuel pump price reductions since the introduction of the price controls where a litre of super petrol, kerosene and diesel reduced by Sh9.21, Sh8.01 and Sh8.08 respectively in Nairobi and its environs. ERC had then attributed the reduction to lower crude oil prices
