Relief for motorists, households after record drop in fuel prices

Motorists will from midnight enjoy a record drop in pump prices after the Energy and Petroleum Regulatory Authority revised down fuel costs.

The prices of petrol and diesel have dropped by Sh18 and Sh4.09 per litre respectively, to retail at Sh92.87 and Sh91.37 in Nairobi, down from Sh110.87 and Sh95.46 respectively.

Kerosene, relied upon by low-income households for lighting and powering cook stoves, has recorded the biggest margin decreased by Sh18.18 to Sh77.28 a litre in the city, according to the latest monthly prices set by EPRA.

The reduced prices, which will be in place for the next one month till May 14, follow a fall in the price of crude oil in the international market.

“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol decreasing by 34.61 per cent from $472.59 per cubic metre in February to $309.03 per cubic metre in March; diesel decreasing by 9.89 per cent from $480.21 per cubic metre to $432.70 per cubic metre and kerosene decreasing by 37.70 per cent from to $421.24 per cubic metre to $262.44 per cubic metre,” the EPRA said in a statement.

The energy regulator further said that during the period, the shilling depreciated 2.75 per cent against the dollar to stand at 101.27 units, which increased Kenya’s foreign exchange costs in cargo procurement.

The regulator said prices of diesel, used to power commercial vehicles like buses and tractors, did not fall with a big margin compared to petrol, in what could have significantly lowered the costs of transport, mechanised farming and industrial production because the costs was based on February’s crude prices.

“It is worth noting that the diesel cargoes used in the computation of this month’s prices were procured in February when the crude oil prices were relatively high. Accordingly, the effect of the recent crash in crude oil prices will be reflected in the retail price of diesel in subsequent reviews,” said EPRA director-general Pavel Oimeke.

Petroleum prices vary across Kenya due to transport costs that reflect how far a location is from the port of Mombasa.

Mombasa consumers will, therefore, pay the lowest at Sh90.40 per litre of super and Sh95.09 for diesel.

Petrol is most expensive in the northeastern towns. Mandera motorists will pay Sh105.91 a litre, or Sh15.51 more than in Mombasa, while diesel will cost Sh110.60 a litre.

Global crude prices have crashed as the coronavirus pandemic continues to erode demand and the Saudi Arabia-Russia price war that threatened to escalate oversupply.