Motorists and industries are set to pay less for their fuel following a decline in prices in the latest review by the regulator.
According to Energy and Petroleum Regulatory Authority (EPRA), the retail prices for petrol and diesel have decreased by Sh4.76 and Sh1.08 per litre respectively, while kerosene increased by Sh0.44 per litre.
Therefore, petrol will now retail at Sh108.05 in Nairobi, while diesel at Sh101.96 and kerosene at Sh101.08.
The pump prices on the petroleum products are set to take effect from today to November 14, 2019.
This month's review is a turn around decline from the last mid-month review in September, the price of petrol had jumped marginally to Sh112.81 per litre in Nairobi. Diesel also rose by Sh2.44 to Sh103.04 per litre
EPRA had cut its ceiling price for kerosene by Sh3.31 per litre to stand at Sh100.64 per litre.
The decline on capped price on fuel is a relief to consumers and investors, with high anticipation of price jump following the drone attack on Saudi Arabia's two major oil facilities which saw the country's output cut by more than half.
The attack on one of the global's main oil producer in September is expected to lead to a price surge on crude due to cut in exports, affecting the country which orders its products a month earlier.
This may likely to cause a change in prices with reflection from November.
Reuters in September reported that Saudi Aramco’s full return to normal oil production volumes may take months, according to two sources from the company.
EPRA has however maintained its commitment to maintain the prices at reasonable levels to for local consumers and observe fair competition for investors exporting to neighbouring countries.
In a statement by EPRA, the changes in the month's prices have been as a consequence of the average landed cost of imported super petrol decreasing by 7.66 per cent from $497.36 per cubic metre in August to $459.27 in September.
Diesel decreased by 2.32 per cent from $503.61 to $491.94 while kerosene increased by 0.47 per cent from $484.29 to $486.55 per cubic metre.
The free on board price of crude oil lifted in September was $64.42 per barrel, an increase of 3.40 per cent from $62.30 in August.
The imports were on backdrop of a mean monthly US dollar to Kenyan shilling exchange rate which depreciated by 0.34 per cent from Sh103.44 per $1 in August to Sh103.79 in September.
The prices are also inclusive of 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018 and the revised rates for excise duty adjusted for inflation as of July 9, 2019.
