Kenya: Kerosene Users Gain Big in August Fuel Price Review

KEROSENE users have every reason to smile for the next thirty days even as motorists who use Super petrol dig deeper into their pockets to be on the move.

The Energy Regulatory Commission on Friday cut kerosene prices by Sh4.76 but pushed up Super petrol prices by Sh4.06 factor in an increase in road maintenance levy. Diesel prices on the other hand dropped by Sh1.21 despite the loading of the levy.

  • ERC Director general Joseph Ng’ang’a said the pricing of the pump prices for petrol and diesel took into account the additional Sh3 enhanced road maintenance levy that was announced in this year’s budget. The increase was gazetted on July 17 bringing the total amount

    In Nairobi, a litre of Super Petrol will from today retail at Sh102.65, diesel Sh83.35 and kerosene Sh57.98.

    Super petrol will retail at Sh99.32 per litre in Mombasa, while diesel and kerosene will each retail at Sh80.06 and Sh55.25.

    The maximum price for litre of Super petrol will be Sh116.46 in Mandera at while diesel will be sold at Sh97.16 and Sh71.79 for kerosene.

    Last month the commission increased pump prices for Super petrol, kerosene and diesel by Sh1.31, Sh0.96 and Sh1.25, respectively while in June the pump prices for the three fuels went up by an average of Sh3.63 perlitre.

    Ng’ang’a said the increase in petrol pump prices was a consequence of the average landed cost of Super petrol which increased by 1.25 per cent from $ 718.97 per tonne in June to $ 727.97 per tonne in July.

    During the period the average landed cost of imported kerosene decreased by 11.74 per cent from $ 619.21 to $ 546.52 per tonne while that of imported diesel decreased by 8.9 per cent from $ 610.94 to $ 556.55 per tonne, he said.

    “Accordingly, recovery of the additional cost borne by oil marketing companies has been factored for all cargoes whose taxes were paid after the effective date,” he added.

    According to Ng’ang’a, the price of a barrel of Murban crude after factoring in shipping costs decreased by 9.42 per cent to $ 57.70 in July from $ 63.70 in June.

    Murban crude is used as the benchmark for tracking prices of the petroleum products imported locally.

    However, the continued depreciation of the shilling against the dollar has negatively affected the importation costs of crude.

    The mean monthly dollar to shilling exchange rare depreciated by 3.36 per cent from Sh98.13 in June to Sh101.43 in July.

    “The commission wishes to assure the general public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy sector. In this respect, consumers are requested to be vigilant in reporting non-compliant retailers to the authorities for necessary legal action,” he said.

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