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Why price of petrol dropped by Sh9

The energy sector regulator has reduced the price of petrol by Sh9.36 a litre for the period up to November 14.

The Energy Regulatory Commission (ERC), however, increased the price of diesel and kerosene by Sh2.44 and Sh3.49 a litre, respectively, citing a rise in their freight costs.

“This was a consequence of the average landed cost of imported super petrol decreasing by 18.86 per cent from $695.68 per tonne in August to $564.47 per tonne in September. On the other hand, the average landed cost of imported diesel during the period increased by 5.78 per cent to $521.43 per tonne.

“Additionally, the average landed cost of imported kerosene during the same period increased by 6.43 per cent to $504.86 per tonne,” ERC Director-General Joseph Ng’ang’a said in a statement.

The price adjustments mean that super petrol will retail at Sh93.29 a litre in Nairobi while diesel and kerosene will cost Sh82.43 and Sh56.04 a litre, respectively.

Fuel consumers in Mombasa will enjoy the lowest prices at Sh89.98 a litre for super petrol and Sh79.15 and Sh53.32 a litre for diesel and kerosene, respectively.

The ERC has also attributed the price changes to a decrease in international crude prices and the depreciation of the shilling against the dollar, which is said to have eroded the gains from lower international oil prices.

“The price of Murban crude oil was $46.6 per barrel in September, a decrease of 4.61 per cent. Over the same period, the US dollar continued to strengthen against other world currencies. As a result, the mean monthly exchange rate depreciated by 1.82 per cent to Sh105.14 in September,” said Mr Ng’ang’a.