Relief for motorists as petrol, diesel prices drop

The Energy and Petroleum Regulatory Authority (EPRA) has cut its maximum pump prices for both petrol and diesel by Ksh.2.86 and Ksh.3.28 respectively in its mid-month review.

The price drop comes as a temporally relief to motorists who have in recent months experienced elevated pump-prices due to increased crude costs in the international market.

Kerosene prices have, however, increased by an average Ksh.1.98 per litre.

EPRA has attributed the latest decrease in petrol and diesel costs to a break in the pricing of fuel imports between June and July.

“The changes in this month’s prices have been a consequence of the average cost of imported super petrol and diesel decreasing by 5.6 and 7.1 percent between June and July 2019,” read EPRA’s statement to media houses in part.

A litre of petrol in Nairobi will now cost motorists Ksh112.53 over the next month to the next pricing review while diesel costs will come down to Ksh.100.60.

At the same time, kerosene costs have once again super-ceded the costs of diesel as a litre of paraffin inflates to an average Ksh.103.95.

The new pump-prices are expected to take effect at midnight on Thursday and will run across the rest of August and into the first half of September.

The overall fall in petroleum prices will provide much needed relief to pent up pressure on inflation which is in great part pegged on the pricing of fuel.

Inflation across July hit a 3-month high rate of 6.3 percent with the fluctuation of petroleum prices impacting both electricity and transport.

Falling import costs are however against a surge of the free on board (FOB) price of Murban crude oil lifted in July which was recorded at Ksh.6813 per barrel from Ksh.6480 in June.

Additionally, the Kenya shillings effective exchange rate against the import dominant US dollar has depreciated by 1.39 percent to an average Ksh.103.31 in July.