Kenya’s energy sector regulator,Energy Regulation Commission (ERC), has cut the retail prices of petrol, diesel and kerosene to adjust to the falling cost of crude oil. The move seems to be targeted at taming the rising inflation which stands at 8.36 percent as at August, up from 7.67 percent in July.
ERC announces cost of fuel in the country every month having taken over from the oil marketers which used to manipulate the market and adjust the fuel prices whenever they felt so.
ERC Director General Joseph Ng’ang’a said that Super petrol will now retail at Sh4.98 less while kerosene prices have gone down by Sh1.42 and diesel Sh0.62 per litre. This means that petrol will cost Ksh111.64 in Nairobi while the same will cost Ksh108.28 in Mombasa. Diesel will cost Ksh99.03 in Mombasa and Ksh102.36 in Nairobi
The move to reduce the prices of the key fuel to the economy was also necessitated by the fact that imported super petrol decreased by 6.97 per cent from $1,076.74 per tonne in July from $1001.64 in August.
“Over the same period the average landed cost of kerosene decreased by 3.45 per cent from $990.75 per tonne in July, 2014 to $956.53 per tonne in August, 2014, while diesel reduced by 0.77 per cent from $925.40 in July to $918.30 per tonne in August,” the director-general added.
The price adjustments take effect on Sep. 15 and will stay in place for one month.