Relief at the Pump as Fuel Prices Drop Signaling a Drop in Inflation

Kenyans will have a reprieve at the pump for the next one month after the Energy Regulatory Commission announced a slight drop in fuel prices against the expectations of many economic analysts who had foreseen an increase in the prices.

The Commission has attributed the drop to the decline in the landed cost of petrol, diesel, and kerosene for the month of May as compared to those recorded in April.

In Nairobi, residents will get petrol at a pump price of 98.73 shillings per liter down from 99.59 shillings per liter last month while diesel, which was retailing at 88.05 shillings per liter in May, will now be retailing at 1.16 shillings less. Kerosene will retail at 65.05 shillings per liter down from last month’s 65.28 shillings per liter.

According to the statement released by the regulatory body, “Over the same period, the mean monthly US dollar to Kenya shillings exchange rate appreciated by 0.01 percent from Sh103.33 per USD in April 2017 to Sh103.31 per USD in May 2017,”

According to the statement, crude oil prices fell for the fourth month in a row, a move that saw a downward trend being witnessed in April’s $53.4 per barrel to $51.45 in May. The average landed cost of super petrol rose by 0.94 percent from $563.62 per ton in March 2017 to $568.92 per ton in April 2017. Diesel, on the other hand, decreased by 2.20 percent from $504.83 per ton to USD 493.72 while the average landed cost of kerosene increased by1.93 percent from $497.44 to $507.02.