ERC announces fuel price drop

Motorists can breathe a sigh of relief after the Energy Regulatory Commission (ERC) announced a drop in the price of fuel for the next one month.

In the latest review, the price of a liter of super petrol is down Sh3.74 and will retail at Sh91.39 in Nairobi.

A liter of diesel will be Sh2.05 cheaper while the price for a liter of kerosene will be down Sh3.38.

The price drop is attributable to a global easing of crude oil prices during the month as the stability of the Kenya shilling.

The slash in fuel prices reverses a three month increase in the cost of fuel on the back of declining global crude oil prices.

Motorists have been calling for a downward review of the prices in light of the rising cost of living.

The review comes at a time the government think tank the Kenya Institute for Public Policy Research and Analysis (KIPPRA) is calling for ERC to review the pricing formula to remove some cost components that have been rendered obsolete but continue to burden consumers.

Of concern is the refinery cost that is still in the pricing close to three years after the Kenya Petroleum Refinery Limited (KPRL) shut down forcing Kenya to import refined fuel.

The government plans to convert the KPRL plant into a storage facility for crude oil set to be exported from June 2017.

Fuel price controls were introduced in 2010, as part of government efforts to tame oil marketers from exploiting consumers.