BY JOAN WANJIKU,NAIROBI,14TH MARCH,2020-The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction of petrol and diesel pump prices with motorists set to enjoy the new prices for the next one month starting midnight.
Petrol prices have been reduced by Ksh.2 per litre while diesel buyers will buy by Ksh.2.80 less a litre .
Meanwhile, Kerosene users will continue to count relief for the third month running as their fuel costs per litre are cut by a further Ksh.7.23.
The changes in this month maximum cost to fuel follows the decrease in the average cost landed fuels in February with price of petrol orders declining by 3.4 per cent per cubic metre while that of diesel and kerosene decreasing by 5.3 per cent and 15 per cent respectively.
Motorists are set for another huge relief in fuel costs in the next review in line with the global slowdown in fuel costs with Saturday’s review only representing price corrections across the month of February in the international market alone.
“It is worthwhile noting that cargoes used in the computation of this month’s prices were procured in January and February 2020 when the crude oil price was still high. Accordingly, the effect of the recent crash in crude oil prices will be reflected in the subsequent pump price reviews,” stated EPRA in a statement.
Petrol will now retail at Ksh.110.87 per litre in Nairobi while the costs of diesel and kerosene falls to Ksh.101.65 and Ksh.95.46 per litre.
Globally, the Coronavirus outbreak has resulted in a dip in the demand of oil across markets as productivity and travel slows down leading to the correction of costs in the southward direction against higher supply.
According to predictions from the International Energy Agency (IEA) demand for oil is set to dip by at least 1.8 million barrels a day (bpd) from the trade disruptions with China reporting the greatest solo decline to new oil orders.
The sharp corrections have further been accelerated by a brewing oil pricing war between Russia and Saudi Arabia over suggested cuts to global supply to support oil prices under the Coronavirus pandemic.