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Relief for Kenyans as super petrol, Diesel, Kerosene prices drop slightly in October

NEWS
By Jackson Okoth | October 15th 2014
 

The Energy Regulatory Commission (ERC) yesterday announced a 75 cents drop in the price of super petrol to Sh110.89 in Nairobi, beginning today.

Users of diesel will experience the largest drop in prices at the pump of Sh1 and 69 cents with a litre of the commodity now selling at Sh100.67 in Nairobi. Kerosene recorded a drop of 75 cents and will now retail at Sh80.88 per litre, offering mild relief to the mostly rural Kenyans who live off the electricity grid and depend on the commodity to light their homes and cook.

A fall in the overall price of fuel in the October to November, 2014 period is happening when inflationary pressure is also on the downward trend with the monthly rate standing at 6.6 per cent in September 2014 from 8.36 per cent the previous month.

“The current price reductions are as a result of reduction in the international prices of refined petroleum products as well as reduced demurrage costs,” said ERC Director General Eng Joseph Nganga.

For instance, the average landed cost of diesel decreased by 2.91 per cent from $918.30 per tonne in August 2014 to $891.59 per tonne in September. The average landed cost of super petrol decreased by 2.25 per cent $979.08 per tonne in September while that of Kerosene fell by 1.92 per cent to $938.15 per tonne in September 2014 from $956.53 per tonne in August, 2014.

Automotive diesel

“The prices we are publishing today (yesterday) are lower by Sh4.12 for Kerosene, Sh3.80 for automotive diesel and Sh1.37 for super petrol, compared to the same period last year,” said Njoroge. ERC also noted that total cost of demurrage from January 2014 to date is Sh413 million, translating into Sh1.16 per litre compared to Sh 815 million of Sh0.31 per litre at the same time last year.

While overall fuel prices are falling, a weakening shilling continues to exert pressure on prices to shoot up again. In September, the shilling weakened by 0.71 per cent from Sh88.26 to Sh88.89 to the US dollar. While ERC has no mandate over control of LPG, the price of cooking gas has been on a sharp rise in recent months, especially within Kenya’s urban centres.

“We intend to share with the public in the coming days what the commission believes are the recommended prices, based on a model currently being developed as well as publish prices as posted by different marketing companies,” said Eng Njoroge.

Kenya’s fuel pump prices are on a marginal drop at a time when international prices sank the lowest in four years. Crude-oil prices continued to slide yesterday after the International Energy Agency cut its forecasts for oil-demand growth this year and next.

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