Reason to tank up as ERC cuts fuel pump prices, again

A Kerosene pump attendant fills a container at Majengo area in Nyeri. [John Gathua/Standard]

Motorists and poor households will for the third straight month enjoy lower fuel pump prices.

The Energy Regulatory Commission (ERC) yesterday lowered the retail price of diesel, super petrol and kerosene in what is expected to offer Kenyans a reprieve in the cost of living.

Consumers of diesel will enjoy the biggest relief for the next one month, with the regulator capping the price of a litre of the fuel, which is widely used by transporters and manufacturers, by Sh6.28 to retail at Sh95.96 in Nairobi.

This could have a direct impact on the cost of transport and most consumer goods.

Users of super petrol, on the other hand, will enjoy a Sh4.12, with the fuel now set to retail at Sh100.9 while Kerosene, which is mainly used by poor households for cooking and lighting, registering a Sh5.20 reduction per litre to retail at Sh96.50 in the capital.

“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol decreasing by 7.23 per cent… diesel decreasing by 11.29 per cent… and kerosene decreasing by 3.92 per cent,” said ERC in a statement.

The price reduction in the last three months followed the sudden spike occasioned by the introduction of value added tax on petroleum products last year that saw petrol retail for as much as Sh140 per litre in far-flung towns.

ERC started lowering prices in December and on January 14, the regulator announced one of the biggest reduction in petroleum prices since it started regulating maximum retail price in 2010.

At the time, the price of diesel fell by Sh10 a litre while super petrol went down by Sh9 a litre.

The drop announced yesterday was despite a marginal increase in the cost of crude oil during January compared with prices in December. Crude oil went up in January, averaging at $60.95 per barrel against an average of 59.50 in December.

The Shilling also held against the dollar, changing hands at an average rate of Sh101.30 to the dollar.