The Energy Regulatory Commission has announced revised retail pump prices for petroleum products. This development, which is in accordance to the Legal Notice No. 197 of 2010 that deals with petroleum pricing, will go live from January 15 to February 14, 2019.
In particular, motor, heavy machinery owners and domestic users will now pay less for the commodity. Diesel gas prices will see the most notable drop in cost per litre at KES 10.04. This is followed by Super Petrol that will see KES 9.33 slashed for every litre purchased, and by kerosene at KES 3.52 per litre.
Notably, all the prices are inclusive of Value Added Tax (VAT) at 8 percent in line with the recently announced Finance Act 2018 that saw an upward revision of taxes in critical areas.
The Energy Regulatory Commission (ERC) says that this month’s prices have been influenced by the average landed cost of Super Petrol that decreased by 14.87% from US$ 694.18 per ton in November 2018 to US$ 590.92 per ton in December 2018. Diesel and kerosene decreased by 14.71% and 8.62% for the same volume and period, respectively.
What’s more, the mean monthly US Dollar to KES exchange rate grew by 0.27% from KES 102.44 to KES 102.16 over the same period.
“The purpose of the fuel pricing regulation 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 customers. The Commission wishes to ensure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy sector,” says ERC.