REPRIEVE TO MOTORISTS AS FUEL PRICES DROP.

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BY BUSINESS DESK.

Energy Regulatory Commission (ERC) has revised retail pump prices for super petrol, diesel and kerosene indicating a slight decrease in prices.

In Nairobi Super petrol will retail at 98.7 from 99.59, while diesel will retail at 86.89 from 88.05 while Kerosine will retail at 65.05 to 65.28 shillings all per a litre.

Speaking today in Nairobi during a Media briefing, ERC Director General, Pavel Robert Oimeke said the price changes will take effect from June 15th, 2017 to 14th, July 2017.

Oimeke said that the changes in the maximum allowed petroleum pump prices in the other various towns took in to account the weighted average cost of imported refined petroleum products as well as transportation costs.

“Petroleum prices in Nairobi will have Super Petrol, Diesel and Kerosene decrease by 0.86 shillings, 1.16 shillings and 0.23 shillings per litre respectively,” said Oimeke,

Further he added that the commission maintains a Short Message Service (SMS) inquiry system for petroleum pump prices and members of the public can obtain the latest petroleum prices in major towns by sending the message “Price <space> Name of Major Town” to the number: 0707667623.

He added that Kisumu will have Super Petrol, Diesel and Kerosene retailing at 100.72, 89.08 and 66.98 shillings respectively and Mombasa will have Super Petrol, Diesel and Kerosene retailing at 95.47, 83.63 and 62.29 shillings respectively.

Oimeke said the changes in this month’s prices have been as a consequence of the average landed cost of imported Super Petrol decreasing by 0.77 per cent from Ksh. 56,892(about US$568.92) per ton in April 2017 to Ksh 56,453( about US$564.53) per ton in May 2017.

Diesel decreased by 2.52 per cent from Ksh 49,372 (about US$493.72) per ton to Ksh 48,130 (US$481.30) per ton and kerosene decreasing by 0.15 per cent from Ksh 50,702 (US$507.02) per ton to Ksh 50,626 (US$506.26) per ton.

“The Free On Board (FOB) price of Murban crude oil lifted in May 2017 was posted at 5,145 shillings (US$51.45) per barrel, a decrease of 3.65 per cent from 5,340 shillings (US$53.40) per barrel in April 2017,” said Oimeke.

He added that over the same period, the mean  monthly US Dollar to Kenya Shilling exchange rate appreciated by .01 per cent from Ksh. 103.33 per US$ in April 2017 to Ksh. 103.31 per US$ in May 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,” said Oimeke, adding that Oil marketing companies are therefore encouraged to compete below the set maximum prices.

Oimeke said that Petroleum marketing companies and dealers are reminded that it is an offence to sell petroleum products above the maximum prices published by the Commission.

“Any party that contravenes this requirement is liable to a fine of up to Kenya shillings one million and/or the withdrawal of the operating license,” said Oimeke.

He said that the commission works closely with other government agencies and members of the public to ensure compliance with the set prices.

“The commission wishes to assure the general public of its continued commitment to the observance of fair completion and protection of the interests of both consumers and investors in the energy sector and in this respect, consumers are requested to be vigilant in report non-compliant retailers to the authority for necessary legal action,” said Oimeke.

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