The Energy Regulatory Commission (ERC) cut the maximum price of super petrol in Nairobi by Sh4.98 per litre to Sh111.64, while it lowered the price of diesel by Sh0.62 per litre to Sh102.36. PHOTO | FILE | NATION
What you need to know:
Fuel prices have a significant impact on inflation in the economy that depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking.
The price of petroleum products has this month fallen by the biggest margin since January 2012, a move that is set to calm the nerves of policymakers racing to bring inflation within the government’s preferred target. The Energy Regulatory Commission (ERC) cut the maximum price of super petrol in Nairobi by Sh4.98 per litre to Sh111.64, while it lowered the price of diesel by Sh0.62 per litre to Sh102.36. The price of Kerosene fell by Sh1.42 per litre to Sh82.79.
At Sh4.98 per litre, the drop is the largest since January 2012 when ERC cut petrol prices by Sh7.11 in Nairobi.
The energy regulator attributed the drop in prices to lower crude oil prices — which stood at $104.25 when Kenya imported fuel last month compared to the previous cargo at $109.50 per barrel. Fuel prices have a significant impact on inflation in the economy that depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking. Inflation increased to 8.36 per cent in August from 7.67 per cent in July on rising food, electricity and transport prices. It was the highest level since June 2012. Kenyan authorities prefer inflation at between 3.5 and 7.5 per cent.
