ERC announces new fuel prices

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The Energy Regulatory Commission (ERC) on Monday slashed the prices of Super Petrol, Diesel and Kerosene in accordance with the petroleum pricing regulations.

According to the energy regulator, the move was warranted by the fact that the average landed cost of imported fuel decreased in December 2018.

“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene decreases by Ksh. 9.33, Ksh. 10.4 and Ksh. 3.52 per litre respectively,” ERC said in an official statement.

“The changes in this month’s prices have been a consequence of the average landed cost of imported Super Petrol decreasing by 14.87% from US$ 590.92 (Ksh. 60,105) per ton in December 2018; Diesel decreasing by 14.71% from US$ 615.97 (Ksh. 62,653) per ton and kerosene decreasing by 8.62% from US$ 620.05 (Ksh. 63,068) per ton.”

Following the review, a litre of kerosene will retail at Ksh. 101.7 in Nairobi while a litre of petrol will go for Ksh. 104.21. A litre of diesel on the other hand will retail at Ksh. 102.24 in the capital.

The Coastal city Mombasa will enjoy the lowest rates with a litre of super petrol retailing at Ksh.101.6, diesel at Ksh.99.60 while kerosene will be sold at Ksh.99.09. In Eldoret, a litre of super petrol will sell for Ksh.105.74, diesel will retail at Ksh.103.95 while kerosene will sell at Ksh. 103.41 per litre.

The prices are inclusive of Value Added Tax (VAT) at 8 per cent in line with the provisions of the Finance Act 2018.

The decrease in the price of fuel is expected to ease inflation that had affected the cost of living at the end of 2018. Inflation in December stood at a fourteen month high of 5.71 per cent and this was attributed to price and fare increase experienced during the end year holidays. Following the review on fuel prices, all eyes will be on the Public Transport Sector to see whether they will forward the benefit to customers who had been enduring higher fares tied to the fuel charges.

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