The Energy Regulatory Commission (ERC) last Friday introduced new pump prices in accordance with the Energy (Petroleum Pricing) Regulations and its amendment and the Legal Notice No196 of 2010. The new retail prices will see the maximum allowed price for super petrol decrease by Sh2.21 for each litre, diesel prices will increase by Sh0.39 per litre while kerosene prices will rise by Sh0.29 per litre.
The New Pump Prices
The new set prices are in line with the 16 per cent VAT on petroleum products and the regulator shall revise the prices when the VAT is changed. Last week, President Kenyatta proposed slashing the fuel tax by 50 per cent to 8 per cent, a recommendation that will either be approved or rejected by Parliament.
“The changes in this month’s prices have been as a consequence of the average landed cost of imported super petrol decreasing by 2.33 per cent from $761.55 per ton in July 2018 to $743.85 per ton in August 2018; diesel increasing by 0.40 per cent from $683.25 per ton to $68.95 per ton and kerosene decreasing by 0.60 per cent from $721.62 per ton to $717.30 per ton,” ERC said in a statement.
In its statement, ERC observed that the “free on board (FOB) price of Murban crude oil listed in August 2018 was posted at $75.05 per barrel,” dropping 1.64 per cent from $76.30 for every barrel in July 2018. In the same period, the mean monthly USD to Kenya Shilling exchange rate fell 0.11 per cent from Sh100.60 to Sh100.71 in August this year.
“The purpose of the fuel pricing regulations is to cap the pump prices of the products which are already in the country so that the importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers,” ERC Director General Pavel Oimeke said.
In Nakuru, the new prices will be Sh126.12 for a litre of super petrol, Sh116.23 for a litre of diesel, and Sh98.51 for a litre of kerosene. In Mombasa, the new prices per litre for super petrol, diesel, and kerosene are Sh122.76, Sh112.65, and Sh94.90 respectively while in Kisumu they are Sh127.19, Sh117.29, and Sh99.58 in that order.
The new retail pump prices have been in effect since 15 September 2018 and will run to 14 October 2018.
