Sunday, August 14, 2011

ERC announces new fuel prices

Written By:Glena Nyamwaya,    Posted: Sun, Aug 14, 2011
High crude oil prices and the deteriorating shilling have been termed responsible for the increasing cost of fuel
The Energy Regulatory Commission (ERC) Sunday announced the maximum fuel pump prices which will be in force from 15th August to 14th September.
The new prices indicate a jump of almost 3 shillings in petrol prices, something the commission attributes to the increased crude oil prices in the month of July as well as the deteriorating shilling.
"During the month of July, the international prices of crude oil and refined oil products changes marginally in comparison with previous months' prices. The Free on Board price for Murban crude oil lifted in July was posted at US$ 113.95 per barrel, an increase of 1.6% from US$ 112.15 per barrel in June," the ERC said.
Also, "over the same period, the mean exchange rate deteriorated to 90.25 shillings per US$ in July from 89.02 shillings in the previous month, a change equivalent to 1.4%."
Maximum pump price
Mombasa records the lowest pump prices for the refined petroleum products followed by Kilifi whereas residents of North Eastern province will have to dig deeper into their pockets as fuel will cost most in Mandera at almost 130 shillings per liter followed by Lokichogio at over 126 shillings per liter.
The ERC says the average landing cost of imported petrol decreased by 0.1 percent from 1,098.78 dollars per metric ton to 1097.83 while that of diesel decreased by 0.4 percent from 1,007.20 to 1002.67 dollars per metric ton.
To cushion kerosene consumers from the impact of the rising international prices, the ERC maintained a lower maximum allowed wholesale margin of kerosene at 4 shillings per liter, instead of the projected 6 shillings.
The commission noted that since June, the international prices of both crude oil and refined petroleum products have been unstable, with both upward and downward swings.
"Any decreases in the procurement costs realized during the month of August will be passed on to the consumers in the next price review," the commission sort to reassure the consumers.

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