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Reprieve for transporters as ERC cuts diesel prices

By NEVILLE OTUKI October 15th, 2016 2 min read

Petrol will from Saturday morning retail Sh0.17 higher per litre while diesel is down Sh0.34 a litre for the next one month in the latest review by the Energy Regulatory Commission (ERC).

Motorists in Nairobi will pay Sh91.56 for a litre of petrol at the pump, up from Sh91.39 while diesel, mainly used to run trucks, buses and tractors, will cost Sh82.12 a litre, down from Sh82.46.

The new prices will be in place until November 14 when the ERC adjusts them in its monthly reviews.

The energy regulator attributed the variation in the price movements of petrol and diesel to different import costs of the commodities when the stocks were purchased. The import cost of petrol was up 0.81 per cent while diesel was down 1.31 per cent.

There is a lag of between 30 and 45 days between the placing of supply orders and actual delivery of consignments at the Mombasa port, meaning local prices do not immediately reflect global market trends.


This means Kenya bought the consignment in August when global oil prices stood at $45.75 a barrel, up from $44.60 a month earlier. Global oil prices are now at $50 a barrel (159 litres).

The price of kerosene, mainly used by poor homes for cooking and lighting, is down Sh0.39 to Sh58.71 a litre in the city.

Kenya now purely depends on imports for its monthly petroleum needs after its sole refinery, the Kenya Petroleum Refineries Ltd, was shut down in September 2013.

Fuel prices are also determined by forex exchange. The shilling has held steady against the US dollar at Sh101 since the beginning of the year.

Fuel attracts multiple tax charges that consumers pay for at the retail pump. Excise duty on petrol is Sh19.89 a litre while the levy on diesel is Sh10.3 per litre. Petrol and diesel also attract a road levy charge of Sh18 a litre.