15 November 2012

Kenya: ERC Cuts Fuel Prices Citing Cheap Imports

Consumers countrywide will pay slightly lower for fuel in the next month as the festive season kicks in. The Energy Regulatory Commission lowered fuel prices by an average Sh1.58 for Super petrol , Sh0.26 for diesel and Sh 1.14 per litre of kerosene.

This means in Nairobi super petrol will go for a maximum of Sh113.68, Diesel at Sh105.85 and Kerosene at most Sh84.87 per litre. In Mombasa the petrol will go for Sh110.42, Sh102.62 for diesel and Sh82.07 for kerosene.

Kisumu residents will pay Sh115.43 for super petrol, Sh107.83 for diesel. and Sh86.65 for kerosene. This comes after the prises shot sharply in mid-October by Sh6.31, Sh5.04 and Sh 6.31 for Super, Diesel and Kerosene respectively.

ERC said the Free on Board price of Murban Crude lifted in October was posted at $113.20 per barrel, a decrease of 2.03 per cent from $115.54 in September.

The average cost of imported super petrol decreased by 2.78 per cent, Diesel by 2.96 per cent wile kerosene went down by 0.85 per cent in October.

It blames the exchange rate for eroding the gains made by cheaper imports "Over the same period the mean monthly exchange rate deteriorated marginally by 0.58 per cent , to Sh85.19 per US dollar in October compared to Sh84.70 in September," said ERC director General Kaburu Mwirichia in a statement.

The instabilities in prices of fuel are seen to be a threat to keeping inflation levels down. Though the inflation rate touched a 4.41 per cent low in October, the cost of transport rose sharply by 1.37 per cent.

According to the Kenya National Bureau of Standards. The increased fuel cost adjustment and forex charges also contributed to high electricity bills

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