Economy

Motorists, homes spared more pain in fuel price review

fuel

Petrol prices hit a nine-year high in the March 2021 review. FILE PHOTO | NMG

A majority of motorists and low-income households have been spared from paying more for diesel and kerosene for the second month in a row.

The prices of diesel and kerosene have remained unchanged in the latest fuel review while the cost of petrol has increased by Sh3.56 per litre.

The Energy and Petroleum Regulatory Authority (Epra) price review shows that diesel will retail at Sh107.66 per litre and kerosene will cost Sh97.85 per litre in Nairobi from May 15. Super petrol price has been increased to Sh126.37 per litre from Sh122.81.

The unchanged prices for diesel and kerosene come amid a drop in the cost of crude oil leading to a fall in the cost of importing the fuels.

“The Free on Board (FoB) price of Murban crude oil lifted in April 2021 was posted at $63.94 per barrel, a decrease of 1.87 percent from $65.16 per barrel in March 2021,” Epra said in a statement on Friday.

The cost of imported petrol and diesel dropped 0.57 percent to $488.69 per cubic metre and 1.03 percent to $439.6 per cubic metre respectively.

Petrol prices had in March hit a nine-year high while diesel retailed at the highest level since December 2018 prompting public anger and uproar.

The State then kept prices unchanged but cut suppliers’ sales margin by Sh4.44 a litre for the period between April 15 and May 14 to diffuse public outrage.

Diesel is used in transportation, power generation, and running of agricultural machinery such as tractors, directly impacting the cost of farm produce.