Relief for Kenyan consumers in pump price reduction

14th April 2017

RELIEF FOR KENYAN CONSUMERS IN PUMP PRICE REDUCTION

Kenyan consumers will, for the next one month, benefit from lower retail prices for petroleum products following today’s price review by the Energy Regulatory Commission (ERC).

The new prices, which take effect from 15th April 2017 to 14th May 2017 have taken account of lower import prices for refined petroleum products arriving at the port of Mombasa. Kenya stopped importing crude oil in September 2013 after refining operations were suspended at Changamwe oil refinery.

The average landed cost of imported Super Petrol decreased 4.22% from US$ 588.47 per ton in February 2017 to US$ 563.62 per ton in March 2017. Diesel decreased by 2.92% from US$ 520.01 per ton to US$ 504.83 per ton and Kerosene decreased by 8.27% from US$ 542.27 per ton to US$ 497.44 per ton.

Consequently, the maximum allowed petroleum pump prices in Nairobi will change as follows: Super Petrol, Diesel and Kerosene decrease by KShs 3.06 per litre, KShs. 1.82 per litre and KShs 3.58 per litre respectively.

Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate remained fairly stable at KShs. 102.95 per US$ in March 2017, compared to KShs 103.41 per US$ in February 2017.

The purpose of the fuel pricing regulations is to cap the pump prices of the products which are already in the country, so that the importation and other prudently incurred costs are recovered, while ensuring reasonable prices to consumers.

In this month’s pump prices, actual losses incurred in the pipeline system were calculated and taken into account. This is an average of 0.067% for the period January to March 2017 which is a reduction from the previous of 0.25%. This has led to petroleum pump price reduction attributed to reduction in the pipeline loss factor as follows: Super Petrol KShs. 0.15, Diesel KShs. 0.13 and Kerosene KShs. 0.09 respectively.

Kenyans can rest assured of the Commission’s continued commitment to the observance of fair competition and protecting the interests of consumers and investors in the energy sector.

Click here to view the full list of maximum retail prices for all Kenyan towns.