Consumers got a slight reprieve yesterday after the Energy Regulatory Commission announced a marginal drop in fuel prices for the next one month. The ERC attributed the decline to a reduction in average landed cost of imported oil and a stable shilling against major currencies.
In this month's review fuel prices fell by between Sh0.55 and Sh1.61 a litre in Nairobi. Petrol prices in the city are down by Sh1.61 to Sh112.27 a litre.
Diesel will now retail at Sh104.47 which is Sh1.08 lower than last month's Sh105.55 a litre. Kerosene mainly used for lighting and cooking has dropped by 55 cents to Sh85.01 in Nairobi. A tonne of landed petrol cost 2.39 per cent less to Sh88,365.15($1,039.59), diesel was priced 0.89 per cent lower at Sh82,405.80 ($969.48) while kerosene was imported at Sh86,581($1,018.60), ERC reported.
The shilling on the other hand exchanged at an average of 87.10 to the US dollar in September from August's 87.45. The price of Murban crude oil that was lifted in September was however 2.51 per cent higher compared to August at Sh9,494.50($111.70) a barrel.
The drop in fuel prices would be a relief to consumers who saw prices of goods and services rise by an average of 8.29 per cent last month, largely due to the standard 16 per cent value added tax effected on September 2. The fuel index grouped together with housing, electricity and water was 5.13 per cent up compared to August.