Pump prices for petrol and kerosene reduce by Sh0.63 and Sh0.73 per litre respectively

A petrol station attendant in Nairobi fueling a car. The price of fuel has dropped. PHOTO: JENIPHER WACHIE

Motorists in Kenya will breathe a sigh of relief as the price of super petrol goes down marginally over the next month.

Yesterday’s price review from the Energy Regulatory Commission (ERC) has also seen the price of kerosene reduce marginally to the benefit of families using kerosene for cooking and lighting.

The latest price review that goes into effect as from today will now see maximum pump prices for super petrol and kerosene reduce by Sh0.63 and Sh0.73 per litre respectively in Nairobi. The price of diesel has remained the same.

This means that a litre of super petrol in Nairobi will now retail at sh106.8 with the ERC attributing the reduction to a decrease in the average landed cost of the imported product.

“The changes have been as a result of the average landed cost of imported super petrol decreasing by 1.05 per cent from $680.05 (Sh68,680) per tonne in February 2018 to $672.9 (Sh67,962) in March 2018,” said the regulator in a statement.

Over the same period, the Kenya shilling appreciated 0.28 per cent against the US Dollar to trade at 101.16 as at the end of last month. This is the second time in close to eight months that the price of petrol is dropping, albeit marginally.

A litre of kerosene in Nairobi will now retail at Sh76.72 and Sh73.94 in Mombasa following a reduction in the landed cost of kerosene from $668 (Sh67,468) to $663.36 (67,000).

The price decrease will have an immediate impact on the budgets of motorists and consumers who rely on kerosene for cooking and lighting their homes as well as reduce operation costs for manufacturers.

Data from the latest report by the World Bank on the state of the country’s economy indicates that energy and food inflation continue to be the main drivers of the Kenya’sinflation.

In fact since November 2017, energy inflation has grown almost threefold and is now the largest contributor to overhead inflation.

This comes at a time when firms are eager to shake off the malaise of last year’s protracted general election that impacted negatively on production across several sectors.