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April 20, 2018

Fuel prices in marginal drop

Shell petrol station./MONICAH MWANGI
Shell petrol station./MONICAH MWANGI

Motorists can breathe a sigh of relief after the regulator reduced cost of super petrol.

The maximum retail price for the fuel will be Sh106.83 for the next month, a reduction of Sh0.63 from Sh107.46 in March.

A litre of kerosene will sell at Sh76.72, dropping Sh0.73 in the latest review, but the price of diesel remains unchanged

The regulator said the changes are as a result of a drop recorded in the global prices.

“The changes in this month’s prices have been as a consequence of the average landed cost of imported super petrol, which dropped by 1.05 per cent from $680.05 per ton in February to $672.90 per ton in March,” said director general Robert Oimeke in a press statement.

A study by the regulator that was released last month proposed increase in retail prices of fuel in order to give oil dealers better profit margins

The report suggests that margins for petroleum traders be increased to Sh11.66 per litre of petroleum, from the current Sh10.89.

Wholesalers are currently allowed a margin of Sh7 per litre on prices of petrol, diesel or kerosene, and retailers can mark up by Sh3.89 for every litre of fuel sold, representing the full margin of Sh10.89.

The report wants the retail margin doubled to Sh8.61 per litre as the wholesale margin drops to Sh3.05, the net effect being an increment in pump prices by Sh0.77 a litre.

 

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