•Households who largely rely on Kerosene for lighting and cooking will buy a litre of the commodity for Sh5.71 less.
•Global prices have been on a declining mode, with analyst projecting them to drop to $60 per barrel.
Image: FILE
The government has cut fuel prices for the month to July 14 as a result of declining rates in the global market and the strengthening shilling.
Latest price update by the Energy and Petroleum Regulatory Authority (EPRA) shows motorists will pay Sh3 less for a litre of petrol and Sh6.08 lower for similar quantity of diesel.
In the review the government tapped into the fuel stabilization fund again this month specifically for Petrol.
Households who largely rely on Kerosene for lighting and cooking will buy a litre of the commodity for Sh5.71 less.
"The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," EPRA boss Daniel Kiptoo said in a statement released Friday.
The average landed cost of imported Super Petrol decreased by 1.95 per cent from $765.87 per cubic metre in April 2024 to $750.95 per cubic metre in May 2024; Diesel decreased by 3.92 per cent from $719.21 per cubic metre to $690.99 per cubic metre while Kerosene decreased by 6.84 per cent from $728.97 per cubic metre to $679.14 per cubic.
Global prices have been on a declining mode, with analyst projecting them to drop to $60 per barrel.
For instance, Citi analysts have painted a bleak picture for the oil market, forecasting a significant price drop by 2025.
According to their latest note, they anticipate a decline to $60 per barrel for Brent crude, marking a decrease of over 20 per cent compared to current market expectations.
The report suggests that while short-term volatility may lead to some upside risks, the long-term trend is bearish.
The drop in fuel prices is likely to further boost the further decline in the cost of living currently at five per cent.
The drop means that motorists in Nairobi will buy a litre of super petrol at Sh189.83 and diesel Sh173.10. A litre of kerosene will retail at Sh163.05.
Those in Mombasa with buy a litre of super petrol at Sh186.66, diesel Sh169.63 and kerosene at Sh160.
Last month, the state cut the price of a petrol by Sh1, diesel by Sh1.20 per litre and kerosene by Sh1.30 per litre.