Reprieve for motorists as fuel prices drop

Pump prices have gone down for the third month consecutively despite an increase in fuel levies by Ksh 3 per litre.

Super Petrol prices have gone down by Ksh 0.40 per liter while Diesel goes down by Ksh 1.15 per liter,  Kerosene down by Ksh 1.54 per litre.

According to the Energy Regulatory Commission (ERC), the review, which takes effect from midnight to January 14th, 2016, indicated the new prices with Super Petrol expected to retail at Ksh 90.06, Diesel to retail Ksh 78.51 per litre while Kerosene will sell at Ksh 53.27 per litre in Nairobi.

However, the price of one cargo of Diesel has been increased by Ksh 2.021 per litre while that of Super Petrol has remained at Ksh 19.895 per litre with Kerosene remaining zero rated.

The reduction of the prices are as a result of the average landing cost of imported Super Petrol which decreased by 0.88%

According to ERC Director General Joseph Ng’ang’a, the new prices are as a consequence of the average landed cost of imported Super Petrol decreasing by 0.88% from 546.85 dollars per ton in October 2015 to 542.02 dollars per ton in November 2015.

On the other hand, the average landed cost of imported Diesel during the period decreased by 6.19% from 506.93 dollars per ton to 475.53 dollars per ton.

In addition, the average landed cost of imported Kerosene decreased by 4.93% from 510.88 dollars per ton to 485.70 dollars per ton.

ERC noted that the purpose of fuel pricing regulations is to cap the pump prices of the products already in the country while other prudently incurred costs are recovered hence ensuring reasonable prices to consumers.

A stern warning was also issued to oil traders against selling fuel beyond the recommended prices  and any dealer found inflating the prices risks having their licenses withdrawn and paying a hefty fine.