Pump prices have dropped to the lowest level in 19 months to reflect lower import costs, in a move likely to further ease pressure on falling inflation.
Super petrol prices have fallen by the largest margin of Sh8.18 a litre since May 2020 to Sh180.66 in Nairobi, while diesel and kerosene prices have dropped by Sh3.54 and Sh6.93 respectively, the Energy and Petroleum Regulatory Authority (Epra).
Fuel prices have a big effect on inflation, which relies heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for cooking and lighting.
The fall came in a month when the State opted not to subsidise the petroleum products in the wake of the lower import costs.
Inflation last month dropped to its lowest level since December 2012 at 3.6 percent and keeps the cost of living measure within the government targets of between 2.5 percent and 7.5 percent in the medium term.
The regulator said the cost of importing refined fuel in September compared with the previous month, with diesel and kerosene to retail at Sh168.06 and Sh151.39 respectively in Nairobi for one month starting October 15.
“The average landed cost of imported super petrol decreased by 8.59 percent, diesel decreased by 5.52 percent while kerosene decreased by 6.73 percent per cubic metre in September 2024 from August,” said Epra.
The regulator last month subsidised petrol by Sh0.83 a litre and Sh3.40 in August. Diesel users enjoyed bigger subsidies at Sh1.46 a litre last month and Sh5.20 in August.
The drop in pump prices would have been bigger had Epra yielded to the High Court and reversed the road maintenance levy to Sh18 a litre from the current Sh25.
The High Court froze the increment following a petition filed by a Mombasa resident citing lack of adequate public participation ahead of increasing the levy the Sh7 a litre.
