Kenyans get lowest fuel prices in two years

What you need to know:

  • A litre of diesel will retail at Sh94.52 in Nairbbi, after the Energy Regulatory Commission (ERC) cut fuel prices.
  • A litre of Super Petrol will cost Sh4.09 less on average at Sh106.80, while a litre of kerosene will retail at Sh76.31.

Nairobi motorists will buy diesel for less than Sh100 a litre for the first time in more than two years after Kenya's energy regulator cut prices by Sh6.15.

Starting Friday midnight, a litre of diesel will retail at Sh94.52 in the capital after the Energy Regulatory Commission (ERC) cut fuel prices.

In the review, a litre of Super/Premium Petrol will cost Sh4.09 less on average at Sh106.80, while a litre of kerosene will retail at Sh76.31, which is Sh4.57 less that what most low-income households have been paying.

The ERC attributed the drop to lower global prices of crude oil, which have plummeted in recent months to below $80 (Sh7,200) a barrel.

The cost of imported diesel fell 11.3 per cent last month, that of petrol by 6.43 per cent while that of kerosene by 5.82 per cent, ERC says in a statement.

The drops, which bring prices to where they were in August 2012, augurs well for economic activity.

Fuel prices have a significant impact on inflation in the economy, which depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking.

Inflation last month dropped to 6.43 per cent from the highs of 8.36 per cent in August helped by falling electricity, food and fuel costs.

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