By Judith Akolo
Tumbling international petroleum prices have seen the drop in retail pump prices registered in Kenya with the Energy Regulatory Authority (ERC) announcing a gigantic drop in pump prices.
Diesel prices have registered a massive drop of Kshs 8.82 per liter.
A liter of diesel in Mombasa will retail at below Kshs 65, at Kshs 64.63 while the highest diesel pump price is in Mandera at Kshs. 81.68 a liter, in Nairobi a liter of diesel will cost Ksh 67.88.
Releasing the new prices the Energy Regulatory Authority (ERC) announced a drop of Kshs 2.14 for petrol prices. The lowest pump price for petrol at Ksh. 83.20 is in Mombasa, with the highest at Kshs. 100.31 in Mandera, while in Nairobi vehicle owners will part with Kshs. 86.50 for a liter of petrol.
Kerosene which is mostly used by the urban poor and most rural household has seen the price drop by Kshs 6.51 per liter.
Mombasa has seen the biggest drop in Kerosen prices at Kshs 36.94 which is the lowest. The highest price of kerosene per liter is in Mandera at Kshs. 53.43 while in Nairobi kerosene will cost Kshs 39.62.
The Free On Board (FOB) price of Murban crude oil has dropped to US$ 29.95 per barrel from US$37.25 per barrel in December last year.
“Over the same period, the mean monthly US$ exchange rate to the Kenya Shilling depreciated marginally by 0.10% from Ksh 102.23 per US$ in December last year to kshs 102.33 last month,” said the statement signed by ERC Director General Eng. Joseph Ng’ang’a.
The ERC says the drop in prices is a consequence of the average landed cost of imported super petrol decreasing by 4.22% from US$518.63 per ton in December last year to US$ 496.74 per ton in January this year.
The average landed Diesel decreased by 21.80% from US$ 439.25 per ton to US$ 343.49 per ton while Kerosene decreased by 20.23% from US$ 402.87 per ton to US$ 321.37 per ton.
Ng’ang’a however notes that the drop in prices in not wholly due to the drop in the international crude oil prices.
“Kenya has been a net importer of refined petroleum products since September 2013, movement of local retail public changes in tandem with refined products in the international market,” said Ng’ang’a and added, “Consequently, use of crude oil benchmarks to relate movements in the retail pumps prices locally can be misleading.”