Corporate News
Respite for consumers as pump prices fall
A petrol station attendant fills up a tank at a National Oil petrol station in Nyeri, central Kenya on April 15, 2012. ERC has announced a reduction in oil pump prices in the country, citing the fall in international oil prices. Photo/File
Posted Saturday, July 14 2012 at 14:39
Kenyan consumers will from Sunday pay less for fuel after the Energy Regulatory Commission (ERC) reduced prices for the commodity citing the fall in global oil prices.
Super Petrol has reduced by Sh9.21 per litre and will now sell at Sh108.46 in Nairobi, Diesel Sh97.50 (a drop of Sh8.08), Regular Petrol Sh105.76 (Sh11.70), and Kerosene Sh74.40 (Sh8.01).
The changes come into effect on July 15 with the ERC saying it is a reflection of Murban Crude’s price fall on the international market.
“The downward trend in the price of crude and refined petroleum products in the international market observed in the last three months has continued to hold,” said a statement from Linus Gitonga of the ERC.
A barrel of Murban Crude dropped to $97.35 per barrel in June from May’s $110.60, a 11.98 per cent drop.
The shilling strengthening against major currency also reduced the landing costs which added pressure for a price drop.
The shilling traded at an average price of $84.40 in June from $84.74 in May.
Easing of oil price is expected to reduce the cost of living which is greatly influenced by the oil prices. Consumers have already begun to feel the effects of the price of the commodity going down.
Kenya Power says it will this month charge consumers Sh5.52 per kilowatt hour for fuel costs — a variable component determined by the amount of diesel used to generate electricity — compared to Sh5.97 in June and Sh6.97 in May.
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