BUSINESS and FINANCE

Pump Prices Still High Despite Reduction in Oil Prices

The pump prices in different stations in Kenya are still high despite the reduction in oil prices according to reports. Recent reduction in the price of oil is supposed to reflect directly on the Kenyan economy and the pump prices, however this is not seen.

The reduction in oil prices brought a sigh of relief to many motorists in the country, only to be shocked to see the prices in the petrol stations still remain high. Nairobi motorists beginning Monday night are supposed to pay Sh 0.92 per liter of petrol and Sh 2.18 less per liter of diesel. This indicates that the motorists should pay Sh 85.58 for petrol and Sh 65.70 for diesel. The price of kerosene has increased considerably registering Sh 42.15 per liter. This affects most people in the country because most of them use kerosene to cook and light homes.

According to the energy regulatory commission , the import cost of shipping petrol dropped by 4.16% during the month of February , diesel dropped by 9.4% while that of kerosene increased by 9.8 % . There is a one-month lag between the placement of orders and actual delivery of the consignment to the port of Mombasa. This indicates that the local prices will not reflect immediately the reduction of price because the price will be based on the international market. Reports indicated that the market trend will be monitored and the citizens given the value of their money through excellent service delivery.

The reduction of crude oil prices to $29 per barrel there is resurgence in the crude oil market will push the prices further. Currently the price of the crude oil is picking up recording $40 per barrel in the international market. The global price will affect the future cost of petroleum products in the county and this means that the prices will increase again in April this year.

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