Kenya’s Energy Regulatory Commission (ERC) has marginally decreased its pump prices for its super petrol.
The cost of super petrol has decreased by 0.11 Kenyan shillings due to the drop of the average cost of imported super petrol. Nonetheless, the price of diesel and kerosene have increased to 1.28 Kenyan shillings per litre and 1.46 Kenyan shillings per litre respectively compared to a month ago.
In Mombasa super petrol will retail the cheapest at 86.04 Kenyan shillings, diesel at 74.21 and kerosene at 54.49 Kenyan shillings. In Nairobi, super petrol will retail at 89.35, diesel at 77.48 and Kerosene at 57.21 Kenyan shillings per litre.
Last month, the ERC increased its pump prices for the first time after nearly six months causing an uproar from various sectors. The regulator cited an increase in landed cost of imported super, diesel and kerosene as the exchange rate a factor to the new pricing.
(READ MORE: Kenyans disappointed with hike in fuel prices)
“Petroleum products imported into Kenya are paid in US dollars. For the costs to be incorporated in the pricing formula, an exchange rate is used to convert the US dollar component into Kenyan shillings. As a result, when the shilling depreciates against the US dollar, more shillings would be required to purchase a given volume of product,” ERC said in a statement.
ERC’s mandate which is to ensure that they regulate the electrical energy, petroleum and related products, renewable energy and other forms of energy also protects the interest of consumer, investor and other stakeholder interests.
According to Julians Amboko research analyst at Stratlink Global, the fuel prices are much lower compared to last year.
Nevertheless, Kenyans are yet to feel the reduction of global pump prices despite the country standing to benefit the greatest as an oil importer.
“We are seeing global prices declining by so much and we are feeling a small impact of the same but then again we must look at the structure of the oil market in Kenya but we do not have enough players to foster competition,” Amboko said.
“In my view why we are not seeing the transmission effect is off course the oil market has to process the product after importing and therefore they factor in the net cost. Nonetheless, I think we must really talk about questions such as transport infrastructure and challenges faced.”