Petrol prices drop by Sh7 per litre on strengthening shilling

Fuel prices take a dip for the 5th month in a row. [Standard, File]

The Energy and Petroleum Regulatory Authority (Epra) has reduced fuel prices for the fifth consecutive month.

A litre of super petrol will go down by Sh7.21 to retail at Sh199 in Nairobi.

The cost of diesel will drop by Sh5.09 a litre to Sh190.38 in Nairobi, while kerosene will now retail at Sh188.74 a litre, a drop of Sh4.49.

The reduction has been largely on account of the strengthening shilling, which has in recent weeks gained to Sh137 this week from an all-time low of Sh160 at the start of the year.

Epra, which uses rates quoted by commercial banks when computing retail prices, said the exchange rate had dropped to an average of Sh148 to the dollar in February, down from Sh164 in January.

The new prices come shortly after President William Ruto hinted at a possible decrease in fuel prices.

 Speaking on 14 March in Kericho, where he presided over the laying of the foundation stone for affordable housing projects in various areas, Ruto said that the economy has stabilised and the fuel price is on track as well.

 “This economy had worsened and had fallen into a ditch. Now that I have removed it from the ditch, even on the issue of the dollar, you see the prices have become moderate. Today, you will also receive an announcement on the new fuel review, and it has smoothed because we want to ensure that the country is moving forward,” said Ruto.

 The president stated that the country is on the correct trajectory for development, which is achievable by first avoiding debts and unnecessary borrowing.

 He noted that the country would focus on local resources to elevate development.

 “We must be careful as a nation not to incur debt that has the potential to make our country default. And that is why we are going to use local interventions and revenues to drive our development, and we are going to reduce matters of borrowing,” he added.