Energy and Petroleum Regulatory Authority (EPRA) has reduced fuel prices in the country, with petrol now retailing at one shilling less.
While announcing the the new fuel prices, the energy regulatory body shocked Kenyans that the special commodity’s price could only marginally be reduced even when there was a steep reduction in pricing globally.The landed cost of petrol dropped by 10.6 per cent per cubic-metre between August and September which is the period the currently priced product was imported.
Meanwhile, the landed cost of diesel fell by 6.87 per cent while that of kerosene dropped by 1.82 per cent. In the new pricing, petrol will now retail at Sh178.3, Sh163 for diesel and Sh146.94 for kerosene per litre, in Nairobi.
In the coastal town of Mombasa – with the current decrease in fuel prices – motorists will now pay Sh175.98 for petrol, Sh160.76 for diesel and Sh144.69 for kerosene. But in Eldoret, consumers will have to part ways with Sh178.5, Sh163.72 and Sh147.67 for the three products respectively.
“Taking into account the weighted average cost of imported refined petroleum products and in line with government policy, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: super petrol, diesel and kerosene decrease by Sh1, Sh2 and Sh1 per litre respectively,” said Epra Director-General Daniel Kiptoo in a statement.
It is noteworthy that this current ‘decrease’ in fuel prices is happening even when there is still subsidy on fuel prices in the country. “A subsidy of Sh18.15 per litre and Sh27.47 per litre has been maintained for diesel and kerosene respectively in order to cushion consumers from the otherwise high fuel prices. The government will utilise the Petroleum Development Levy (PDL) to compensate oil marketing companies for the difference in cost,” said Mr Kiptoo.
This will come as suprise to Kenyans since the current president had promised (during his campaigns) that he would drastically reduce the prices of essential commodities, like fuel prices and the price of unga flour. However, going by the latest marginal decrease in fuel prices, there is no hope in the offing that food prices will come down, since fuel prices are the main determinants of other commodities – including the cost of transport.