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Fuel prices drop in latest Epra review
Falling pump prices are key to reducing inflation as diesel is the main driver of the Kenyan economy.
The Energy and Petroleum Regulatory Authority (Epra) has reduced fuel prices in its latest review.
The prices for Super petrol, diesel and kerosene have decreased by Sh0.79, Sh0.11 and Sh0.80 per litre, respectively.
Super petrol will now sell at Sh184.52 per litre in Nairobi while diesel and kerosene will retail at Sh171.47 and Sh154.78 respectively.
Landed costs of fuel (prices of fuel globally and cost of importing it to Kenya) dropped by up to 3.38 percent in what looked set to trigger price reductions.
The cost of importing diesel fell by 3.38 percent to $614.08 (Sh79,597.04) per cubic meters last month compared to $635.58 (Sh82,358.45) for the same quantity in July while that of petrol dropped 0.46 percent to $620.84 (Sh80,473.28) from $623.71 (Sh80,820.34) for the same quantity in the same period.
But a decision not to subsidise petrol and diesel prices further hampered any prospects of consumers enjoying higher price cuts on the two critical commodities.
In the new prices, which will be in force until October 14 this year the State only subsidised kerosene prices at Sh1.38 in what lowered prices of the commodity to Sh154.78 per litre from Sh153.98 in the capital.
Kerosene is mostly used by the low-income households for lighting and cooking, a segment that enjoys a huge relief whenever the State applies a steep subsidy on the commodity.
Besides global shocks in fuel prices, heavy taxation of the critical commodity has further made it costly locally further necessitating the use of the subsidy in order to ease off the impact.
Kenya charges six levies and three taxes on petrol, diesel and kerosene with the highest being the Sh25 Roads Maintenance Levy (RML) collected on every litre of petrol and diesel. RML was hiked by Sh7 per litre in July last year despite public uproar.
