Relief as pump prices drop below historic Sh100 mark

Motorists face hectic time following fuel shortage in several fuel stations in Eldoret town. ERC attributes the fall in fuel prices to low cost of imported refined petroleum products. [Photo: Peter Odhiambo/standard]

Kenyans received a rare Christmas gift from the Energy Regulatory Commission (ERC) Sunday, after it announced a further reduction in the cost of fuel. The price reduction changes take effect today. In the new changes, kerosene, super petrol and diesel decreased by Sh4.94, Sh4.79 and Sh3.67 respectively.

And for the first time in years, the price of super petrol will hit the below historic Sh100 mark as it will be retailing between Sh98.68 and Sh99.91 in Mombasa and other nearby coastal towns. In Nairobi, the commodity will be available in pumps at Sh 102.01.

ERC Director General Joseph Ng’ang’a said the prices were arrived at taking into account the weighted average cost of imported refined petroleum products, adding that other constituent costs remained relatively unchanged. “The average landed cost of imported Kerosene decreased by 11.32 per cent, supper petrol by 8.18 per cent and diesel by 5.30 per cent between October and November,” said Ng’ang’a during a press briefing Sunday at their offices in Upper Hill.

“The prices we are publishing today (Sunday) compared to the same period last year are lower for the three products.” The maximum pump prices per litre effective today until January 14, next year, in Nairobi are now super petrol (102.01), diesel (90.85) and kerosene (71.37).

Other major towns include Mombasa super petrol (98.68), diesel (87.54) and kerosene (68.61). In Nakuru, super petrol will retail at Sh102.70, diesel (Sh91.74) and kerosene (Sh72.17), Eldoret Super Petrol (103.84), diesel (92.89) and kerosene (73.20) and Kisumu super petrol (103.91), diesel (92.95) and Kerosene (73.19).

Festive season

The reduction was received with enthusiasm by motorists and those planning to travel upcountry for the festive season by public means.

Ben Karanja, a motorist in Nairobi, said he was excited about the new prices given that he was planning to take his entire family visit his parents over the weekend. “The reduction may not be a lot but at least it has saved us a few shillings which we can divert to the Christmas shopping budget,” said Karanja. Petroleum marketing companies and dealers who contravene the maximum prices published by the Commission are liable to a fine up to Sh1 million or the withdrawal of the operating licenses.

Ng’ang’a also announced that ERC had approved a tariff of Sh4.36 per unit applicable between 6pm and 6am on the street lighting programme. “For the rest of the time the earlier gazetted tariff will apply to avoid wastage. The relevant instruments have already been prepared to effect this,” said Ng’ang’a.

The street lighting programme aims to improve security and promote a 24-hour economy. Mr Ng’ang’a said the reduction in retail tariffs will be maintained taking into account the additional 70 mega watts of geothermal capacity added by KenGen to Olkarai among other developments.