Kenya fuel prices down by biggest margin since May 2020
Thursday March 14 2024
Pump attendant fueling a vehicle. PHOTO | FILE | NMG
A litre of super petrol has dropped below the Ksh200 mark in the Kenyan capital Nairobi for the first time since August as pump prices fall by up to Ksh7 per litre effective midnight, the biggest drop month-on-month.
A litre of super petrol will retail at Ksh199.15 after a drop of Ksh7.21, while that of diesel will sell at Ksh190.38 a litre, a cut of Ksh5.09. A litre of kerosene will drop by the smallest margin of Ksh4.49 to retail at Ksh188.74 in the city.
The price cuts contained in the latest pricing schedule that will be in force until April 14 are set to boost efforts of further slowing down the cost of living.
The last time pump prices dropped by a big margin was in May 2020 when a litre of super petrol dropped from Ksh92.87 to Ksh83.33 while that of diesel dropped from Ksh97.56 to Ksh78.37.
Read: Fuel cost surge triggers fresh fears of inflation, rate hikes
“The maximum allowed petroleum pump price for super petrol, diesel and kerosene decreased by Ksh7.21 per litre, Ksh5.09 per litre and Ksh4.49 per litre respectively,” Energy and Petroleum Regulatory Authority (Epra) Director General Daniel Kiptoo said in the notice on Thursday.
The drop mirrors the continued fall in prices of refined fuel globally amid waning demand in major economies. A barrel of murban crude for the cargoes used to set the new prices, went for $77.68 compared to $83.32 last month.
The latest price drops are set to further lower inflation which was recorded at 6.3 percent last month from 6.9 percent in January.
The ongoing rally of the shilling against the dollar and the global drop in prices of refined fuel has handed Kenyans the biggest price month-on-month cuts in over three years.
Read: Kenya shilling bounces back against the dollar
Epra used an exchange rate of 148.02 units to the dollar in the latest review compared to the rate of 168.42 units applied in the pricing review that lapses midnight.
The Kenyan economy is diesel-driven and goods manufactures alongside service providers factor in the prevailing prices of fuel in determining the cost of their goods and services.