Fuel Prices to Remain Unchanged
The price of all the three petroleum products will remain unchanged for the second month following the retention of fuel prices by the Energy and Petroleum Regulatory Authority (EPRA).
The stagnation in prices in the mid-month review by the energy sector regulator is however against another rise in the landed cost of the imports.
The average landed cost of imported super petrol rose by 6.21 per cent per cubic metre while that of diesel and kerosene jumped up by 7.36 and 9.8 per cent.
The application of a controversial price stabilization fund has however seen the government provide reprieve to Kenyans against the prevailing high international oil prices.
The authority said that the purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products that are already in the country so that the importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers.
“EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors,” the regulator said.
This mechanism nevertheless continues to lack legal backing with the Petroleum Ministry yet to publish and approve regulations governing the operation of the taxpayer-backed fund.
So far, the mechanism has been applied through the trimming of supply margins payable to oil marketing companies, with the firms later receiving compensation from the National Treasury.
Consequent to this, super petrol will continue retailing at Ksh.127.14 per litre in Nairobi while the price of diesel and kerosene will stick at Ksh.107.66 and Ksh.97.85 respectively.
The hold in petroleum costs remains very crucial in holding down the cost of living in most households for the month of August after new taxes pushed up the rate of inflation to a record high rate of 6.4 per cent in July.
The current fuel prices are slated to hold until EPRA’s next review on September 14.