14th October 2015
Announcement on petroleum pump prices for the period 15th October – 14th November 2015

In accordance with Legal Notice No.196 of 2010 on The Energy (Petroleum Pricing) Regulations, the Energy Regulatory Commission (the Commission) has calculated the maximum retail pump prices of petroleum products which will be in force from 15th October to 14th November 2015.

Taking account of the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump price is as follows: Super Petrol reduces by KES 9.36 per litre, Diesel increases by KES 2.44 per litre while Kerosene increases by KES 3.49 per litre.

This was a consequence of the average landed cost of imported Super Petrol decreasing by 18.86% from US$ 695.68 per ton in August 2015 to US$ 564.47 per ton in September 2015. On the other hand, the average landed cost of imported Diesel during the period increased by 5.78% from US$ 492.92 per ton to US$ 521.43 per ton. Additionally, the average landed cost of imported Kerosene during the same period increased by 6.43% from US$ 474.35 per ton to US$ 504.86 per ton.

The Free On board (FOB) price of Murban crude oil lifted in September 2015 was posted at US$ 46.60 per barrel, a decrease of 4.61% from US$ 48.85 per barrel in August 2015. Over the same period, the US Dollar continued to strengthen against other world currencies. As a result, the mean monthly US Dollar to Kenya Shilling exchange rate depreciated by 1.82% from KES 103.26 per US$ in August 2015 to KES 105.14 per US$ in September 2015.

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.

With the price drop inflation will stay at the 5% range while interest rates are past 20%.Only in Kenya