Fuel prices have hit a year low giving more relief to motorists and households who started paying up to Sh10 less per litre in January.
The Energy Regulatory Commission (ERC) in its February fuel price review yesterday attributed the reduction in prices to the lower price of crude oil in the international markets during the review period, coupled with a stronger shilling.
‘’Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene decrease by Sh4.12, Sh6.28 and Sh5.20 per litre respectively,’’ ERC said.
The regulator added that pump prices are inclusive of the eight per cent Value Added Tax (VAT) in line with provisions of the Finance Act 2018.
“Changes in this month’s prices are as a result of the average landed cost of imported Super Petrol, Diesel and Kerosene decreasing by 7.23, 11.29, 3.92 per cent respectively,” ERC said.
Motorists in Nairobi will for the next month pay Sh100.90 for a litre of petrol, down by Sh3.31 from Sh104.21 they had been paying since January 14. Petrol in the city last traded at Sh100 margin in March last year.
The cost of a litre of diesel has fallen by Sh6.26, to retail at Sh95.96 form Sh102.24.
Kerosene on the other hand will retail at Sh96.50 in the city from Sh101.70, having fallen by Sh6.28 per litre.
The fall in pump prices this month should ideally lead to easing of cost of living. In January, inflation stood at 4.7 per cent having eased from December’s 5.71 per cent, attributed to price and fare increases during the festive season.
Motorists in Mombasa will continue to enjoy the lowest fuel costs, with a litre of petrol in the port city now retailing at Sh97.46, diesel at Sh93.36 and kerosene at Sh93.88.
In Nakuru, a litre of petrol will now be sold at Sh100.63, diesel and kerosene at Sh96.69 and Sh97.21 respectively. In Kisumu, petrol will retail at Sh101.62, while the pump prices for diesel and Kerosene have been set at Sh97.68 and Sh98.20 respectively.
Crude prices have been on the downturn in last three months, going as low as $49 a barrel in late December.
The cost of fuel, especially diesel, filters through to almost all the other sectors of the economy due to the transport factor in pricing of goods and services.