Kenya’s Energy Regulatory Commission has announced a slight drop in the cost of super petrol and diesel effective from 14th March to 15th April 2016.
Super Petrol reduced by KShs 0.92 per litre, Diesel reduced by KShs 2.18 per litre while Kerosene increased by KShs 2.53 per litre. The regulator attributed the price drop to a decrease in the average landed cost of imported super petrol and diesel during the month.
The fuel price review comes a time global crude oil prices have been dropping, selling below 40 dollars a barrel.Petrol and diesel prices have dropped for five straight months in a row.
Few weeks ago,World Bank had faulted Kenya’s fuel pricing formula arguing that the country’s fuel prices did not reflect the free fall witnessed in the global markets.
“Average landed cost of imported Super Petrol decreasing by 4.61% from US$ 496.74 per ton in January 2016 to US$ 473.84 per ton in February 2016. Further, the average landed cost of imported Diesel during the period decreased by 9.43% from US$ 343.49 per ton to US$ 311.11 per ton. On the other hand, the average landed cost of imported Kerosene increased by 9.82% from US$ 321.37 per ton to US$ 352.92 per ton.” Read a statement from the Energy Regulatory Commission.
“After bottoming at around US$ 29 per barrel, there has been resurgence in the price of crude oil in the international market, with the price currently at US$ 40 per barrel. This will influence future pricing of petroleum products locally.” A Clear signal that fuel costs would start rising on a rebound of crude oil in global market.
