Relief for motorists as fuel price slashed

It is also likely to put to end artificial fuel shortages caused by hoarding by suppliers in anticipation of better pricing.

In Summary

• The cost of diesel has decreased by Sh3.28.

The cost of fuel has reduced by Sh2.86.
The cost of fuel has reduced by Sh2.86.
Image: FILE

Super petrol and diesel prices in the country have gone down by Sh2.86 and Sh3.28 per litre respectively, while that of kerosene has increased by Sh1.98.

In the latest review by Energy and Petroleum Regulatory Authority (EPRA), petrol and diesel will retail at Sh112.53 and Sh100.60, while kerosene goes for Sh103.95 in Nairobi.

This will be the second consecutive decline in the price of diesel after it reduced from last months review to Sh103.88.

The new price will also be a relief to petrol users after being on an upward trajectory in previous reviews.

The pump prices are inclusive of 8 per cent value-added tax in line with provisions of Finance Act 2018, and revised rates for excise duty adjusted for inflation through legal notice no. 109 of July 9, 2019.

The changes in the month's prices have been as a consequence of the average landed cost of imported Super petrol decreasing by 5.64 per cent from $528.26 per cubic metre in June to $498.46 in July.

Diesel decreased by 7.11 per cent from $519.39 to $482.47 while kerosene increased by 1.88 per cent from 503.63 to 513.10 per cubic metre.

The free on board price of crude oil lifted in July was $66.15 per barrel, a increase of 2.08 per cent from $64.80 in June.

The imports were on backdrop of a mean monthly US dollar to Kenyan shilling exchange rate which depreciated by 1.39 per cent from Sh101.89 per $1 in June to Sh103.31 in July.