Rédaction Africa Links 24 with Uganda Monitor
Published on 2024-03-15 02:49:46
For the first time since August, the price of a litre of super petrol in Nairobi, Kenya has dropped below Ksh200, with pump prices falling by up to Ksh7 per litre, marking the biggest month-on-month drop. As a result, a litre of super petrol will now retail at Ksh199.15, a decrease of Ksh7.21, while diesel will be sold at Ksh190.38 per litre, a cut of Ksh5.09. The smallest drop was seen in the price of kerosene, which will now retail at Ksh188.74 per litre in the city, a decrease of Ksh4.49. These price cuts are part of the latest pricing schedule in effect until April 14, aimed at slowing down the cost of living in Kenya.
The drop in pump prices is expected to have a positive impact on efforts to lower inflation, which was recorded at 6.3 percent last month, down from 6.9 percent in January. The decrease in global fuel prices, reflected in the drop in the price of murban crude used to set new prices, from $83.32 to $77.68 per barrel, is also contributing to the reduction in pump prices in Kenya.
This decline in fuel prices, coupled with the ongoing rally of the Kenyan shilling against the dollar, has resulted in the biggest month-on-month price cuts for Kenyan consumers in over three years. The Energy and Petroleum Regulatory Authority (Epra) announced the reductions, with Director General Daniel Kiptoo stating that the maximum allowed pump prices for super petrol, diesel, and kerosene have decreased by Ksh7.21, Ksh5.09, and Ksh4.49 per litre, respectively.
The Kenyan economy heavily relies on diesel, with industries and service providers factoring in fuel prices when determining the costs of their goods and services. The exchange rate of 148.02 units to the dollar was used in the latest pricing review, a significant decrease from the previous rate of 168.42 units.
Overall, the drop in fuel prices in Kenya is a positive development for consumers and businesses alike, with the potential to lower the cost of living and boost economic activity. As global fuel prices continue to fluctuate, it will be important to monitor how these changes impact the Kenyan economy in the coming months.
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