Disappointment for motorists as fuel prices fall only marginally

What you need to know:

Consumers were expecting larger cuts in fuel costs in the face of plummeting global oil prices that are trading at 12-year lows.
Kerosene, mostly used by low-income homes for cooking and lighting, has dropped by the biggest margin of Sh7.14 to Sh46.13 a litre.

City motorists will from Thursday midnight buy petrol for Sh1.42 less after the energy regulator reviewed prices, a move that could prove disappointing to consumers who were expecting larger cuts in cost in the face of plummeting global oil prices that are trading at 12-year lows.

Petrol will retail Sh88.64 a litre from Sh90.06 in Nairobi while diesel is down Sh1.81 a litre to Sh76.70.

Kerosene, mostly used by low-income homes for cooking and lighting, has dropped by the biggest margin of Sh7.14 to Sh46.13 a litre. The landed cost of imported kerosene fell by 17.05 per cent, explaining the deep cut in the retail price.

The new prices will be in force for the next one month.

READ: Energy regulator signals relief at the pump for motorists

“The key driver of this decrease was a result of the average landed cost of imported super petrol falling by 4.32 per cent from $542.02 per tonne in November to $518.63 per tonne in December.

Similarly, the average landed cost of imported diesel during the period decreased by 7.63 per cent from $475.53 per tonne to $439.25 per tonne, the Energy Regulatory Commission (ERC) said in a statement.

“This review has now fully taken into consideration the increase in excise duty of Sh2.061 per litre on diesel which became effective on December 1, 2015,” it added.