Fuel Prices: Petrol Witnesses Marginal Rise, Diesel and Kersosene Drop

The Kenyan High Court on Wednesday suspended the planned increament of premiums for motor vehicle insurance by up to 50 per cent.

Sections of Ngong Road Phase I.

In the latest review by Energy and Petroleum Regulatory Authority (EPRA), prices of diesel and kerosene declined marginally by KSh.088 and KSh2.31 per litre. However, the petrol price increased by KSh0.29.

This means consumers in Nairobi will pay KSh103.88, KSh101.97  and Ksh 115.39 per litre for diesel, kerosene, and petrol respectively which will be in force from 15th July to 14th August 2019.

The changes are attributed t average landed cost of imported super petrol decreasing by 1.83% from $538.08 per cubic metre in may to $528.26 in June.

Diesel decreased by 3. 07% to $519.39 from $535.84 while kerosene also declined by 5.49% to 503.63 from 532.89 per cubic metre.

‘The pump prices are inclusive of 8% value added tax in line with provisions of finance act 2018, and revised rates for excise duty adjusted for inflation through legal notice no. 109 of July 9, 2019,” EPRA said.

Commercial Bank of Africa (CBA) Analysts in their July monthly report observe that “On monetary policy, Inflation should remain within the statutory target, although a higher base may see some temporary spike early in the third quarter. Inflation ticked up 21.00bps to 5.70% in June. Looking ahead, prices may be ease somewhat on a month-month basis on reduced cost of some food items as well as fuel prices. At the same time, demand pressure will remain mute, although some upside may stem from the ongoing withdrawal of KES 1000 notes.”

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