Fuel prices unchanged for the second month running

Fuel prices unchanged for the second month running

The price of all three petroleum products will remain unchanged for a second straight month following the retention of fuel costs by the Energy and Petroleum Regulatory Authority (EPRA). The non-movement 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 by 7.36 and 9.8 per cent. The implementation of a controversial price stabilization mechanism/fund has however seen the government provide cushion to Kenyans against the prevailing high international oil prices. The mechanism nevertheless continues to lack a legal backing with the Petroleum Ministry yet to publish and approve regulations governing the operation of the taxpayer backed kitty. So far, the mechanism has been applied through the trimming of supply margins payable to oil marketing companies (OMCs), with the firms later receiving compensation from the National Treasury. Subsequent to the hold in costs, super petrol will continue retailing at Ksh.127.14 per litre in the Capital Nairobi while the price of diesel and kerosene will stick at Ksh.107.66 and Ksh.97.85 respectively. The hold in petroleum costs will meanwhile be crucial in holding down the cost of living for the month of August after new taxes pushed up the rate of inflation to a 16-months high rate of 6.4 per cent in July. The current fuel prices will hold until EPRA’s next review on September 14.

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