Reprieve for consumers as State announces major drop in fuel prices

Petrol station attendant fills a vehicle in Nyeri recently. Yesterday, ERC announced the biggest drop in diesel which will now cost Sh6.15 less per litre. The price of kerosene also decreased by Sh4.57 per litre, while that of super petrol went down by Sh4.09. [Photo: JOHN GATHUA/ STANDARD]

It is a sigh of relief for motorists and consumers as the Government announced that fuel and electricity prices have gone down.

Energy Cabinet Secretary Davis Chirchir and the Energy Regulatory Commission (ERC), yesterday delivered what would appear to be good news about the reduced consumer prices of the key commodities that determine the cost of goods.

ERC, in a dispatch to media houses, announced the biggest drop on petroleum products, showing that finally the country was reaping the dividends of the global slump in oil prices. The new prices for petroleum take effect today, and will be effective till December 14.

The biggest drop was in diese, which will now cost Sh6.15 less per litre. The price of kerosene also decreased by Sh4.57 per litre, while that of super petrol went down by Sh4.09.
ERC boss Joseph Ng’ang’a reminded the oil companies in the country that they should use the new prices henceforth, or else, they will be prosecuted for fleecing the public.

“Dealers are reminded that it is an offence to sell petroleum products above the maximum prices published by the commission. Any party that contravenes this requirement is liable to a fine of up to Sh1 million and/or the withdrawal of the operating licence,” said the Director General of the regulator. He added that ERC was in touch with government agencies and the public to make sure that the retailers and dealers obeyed the new prices. He said ERC was ready with a hotline -0708444000—that the public can use to report the rogue retailers.

Fuel charge

“Consumers are requested to be vigilant in reporting non-compliant retailers to the authorities for necessary legal action,” Ng’ang’a said.
He assured the business people in the oil sector that the intention was not to hurt their business, but to make sure that consumers get “reasonable prices”.

Wajir remains the town with the highest pump price at Sh120.61 for super; Sh108.33 for diesel; and Sh90.12 for kerosene. In Nairobi, the price is Sh106.80 for super petrol; Sh94.52 for diesel and Sh76.31 for kerosene. Mombasa has the least price of Sh103.46 for super petrol; Sh91.20 for diesel and Sh73.54 for kerosene.

At the ministry’s headquarters, Energy and Petroleum Cabinet Secretary Davis Chirchir, has assured Kenyans of low cost and reliable power. This is in regard to the new power plant, which was commissioned by the government recently and is expected to reduce electricity bills by 30 per cent.

“The customers’ bill has significantly gone down with fuel charge cost coming down hence translating to lower cost of living to the customer,” said the CS.

He said the low cost power started from August adding that it will be going all the way to December where it will hit the 30 per cent reduction in electricity bills. The CS said the fuel cost charge on power bills could come down to Sh4 per unit by the end of the year from the current Sh.7.22 per unit.

Through this, Chirchir added, companies save up to Sh25 billion annually by bringing in more geothermal to take the place of diesel which is the cost of fuel on power. He said power will be consistent since they now rely on geothermal power.

“Manufactures should pass this benefit to customers by either increasing manufacturing or creating job opportunities. They should also lower the cost of essential goods,” Chirchir said.

The Cabinet Secretary noted that consumers were feeling the power tariffs drop, which was a promise by the government. He attributed the drop to the shift from diesel to geothermal energy, which he termed as cheaper and reliable. He announced that the 5,000MW expected in the national grid by 2017, 1,600 MW would come from geothermal power.

 


 

Real Estate
Premium Housing scheme: The billions that government cannot afford to lose
Financial Standard
Premium 14 years on, Kenya's oil dream still a mirage amid mounting Tullow woes
By Kamau Muthoni 33 mins ago
Financial Standard
Premium Transport tycoon's widow battles lender over Sh174m 'fictitious' loan
Financial Standard
Premium It's high time we went the lottery way in allocating public sector jobs