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Kenya cuts petrol prices by 10 pc

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Motorists will pay Sh 9.13 less for fuel over the next month, as Energy regulatory Commission(ERC) make its biggest fuel cut in four years,a 10 percent drop.

This is a 10 percent drop compared to the last two months, however it did not meet the big expectations by Kenyan consumers.

Petrol reduced by Sh9.13 per litre to retail at Sh92.88. Diesel droped by Sh7.50 to 83.35 and Kerosene drops by Sh5.78 to Sh65.59.

Consumer lobby, consumer federation of Kenya(Cofek) has since dismissed the latest review terming them government PR.

“We do not accept the latest prices as fair representation of the would-be actual pricing. The price is deceptive public relations exercise on the part of the ERC,” said Cofek Secretary general, Stephen Mutoro.

The lobby has said it will send a petition to the National Assembly and the Senate seeking to amend the Energy Act with a general view of improving governance, restructuring ERC and relieving it of the responsibility of tariff setting.

US benchmark crude fell to a new low, at Sh 4,072 ($45.250 a barrel on Tuesday evening, lowest in six year with the prices last seen in April 2009.

It reflected a 57 percent drop in crude oil prices that was selling at Sh9, 540 ($106/bbl) in June, 2014.

This drop pushed down landed cost of Super Petrol by 39.5percent, diesel by 36.7 percent and kerosene by 33percent.

However, incorporation of taxes and levies, distribution costs and supplier margins led to smaller margins in the local market to 20.3percent for petrol, Diesel 22.2percent and Kerosene 22.9percent in the local market.

“ That notwithstanding, it is worthwhile to note that the prices released this month are the lowest since the Commission started regulating pump prices four years ago,” said Ng’ang’a.

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