Energy regulator raises petrol price, cuts diesel, kerosene

NAIROBI, KENYA: Energy Regulatory Commission (ERC) raised on Friday the maximum retail prices of petrol and cut those of diesel and kerosene for the next four weeks.

This month’s pump prices took account of an additional Shs 3 per litre in the pricing of Super Petrol and Diesel to cover for the enhanced Road Maintenance Levy (RML) announced in the 2015/2016 national budget. 

“The increased Road Maintenance Levy came into effect on 17th July 2015,” says ERC Director General Engineer Joe Ng’ang’a, “accordingly, recovery of the additional cost borne by Oil Marketing Companies has been factored for all cargoes whose taxes were paid after the effective date.”

On the cost of imported, refined petroleum products, the average landed cost of Super Petrol increased by 1.25 per cent from US$ 718.97 per ton in June 2015 to US$ 727.97 per ton in July 2015. On the other hand, the average landed cost of imported Kerosene during the period decreased by 11.74 per cent from US$ 619.21 per ton to US$ 546.52 per ton. Additionally, the average landed cost of imported Diesel during the same period decreased by 8.90 per cent from US$ 610.94 per ton to US$ 556.55 per ton.

Due to the revised Road Maintenance Levy and the weighted average cost of imported refined petroleum products, the maximum allowed price of Super Petrol increases by Shs 4.06 per litre. However, the price of Kerosene reduces by Shs 4.76 per litre and Diesel reduces by Shs 1.21 per litre. 

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. Oil marketing companies are encouraged to compete below the set maximum prices. Consumers are requested to be vigilant in reporting non-compliant retailers to the authorities for necessary legal action.