Kerosene prices are expected to record a drop of at least Sh16 per litre in Nairobi.
The spotlight will remain on oil marketing companies as new prices for the next month are announced on Sunday.
This is after the regulator recently raised the alarm over artificial shortages in some areas.
Petrol pump prices are expected to jump by at least Sh6.50 per litre in Nairobi starting Monday, with diesel users expecting further relief at the pump with a Sh2 drop per litre, according to Energy and Petroleum Regulatory Authority documents seen by the Nation.
CRUDE OIL PRICES
“Between May and June 2020, international crude prices increased by 33.33 per cent with Murban crude quoted at an average of $23.52 per barrel by close of May 2020. As a result, the prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Illuminating Kerosene (IK) increased by 38.18 per cent, 3.38 per cent and 12.65 per cent, respectively, in the international market,” read the brief.
It will be bad news for those who may have hoarded diesel stocks as they stand to lose their bets on the commodity, which is usually sold in higher volumes compared to petrol.
The coronavirus-driven drop in fuel consumption has pushed dealers on the edge — the low prices could have presented an opportunity for higher consumption.
The travel restrictions and curfew will see dealers continue recording low sales, although slightly higher consumption may result from the revised curfew hours.
International crude prices have experienced a rapid recovery after the Organisation of the Petroleum Exporting Countries (OPEC) agreed to cut production by 9.7 million barrels per day at the start of May. The move has kept the prices above $40 (Sh4,240) per barrel since then.
EPRA warned marketers who were hoarding fuel that they risked losing their licences or financial penalties.
LOWER PRICES
Director-General Pavel Oimeke said the hoarding was mainly being done by the major oil marketers with huge storage facilities and who import large volumes.
“It is illegal and we will take stern action on them should they continue doing that. We have also instructed Kenya Pipeline to alert us when they notice such practices,” Mr Oimeke said.
The dealers unsuccessfully tried to block the lowering of fuel prices last month, decrying low demand due to Covid-19 control restrictions.
They wanted the Ministry of Petroleum to block EPRA from factoring the cheap fuel imports in computing the prices to enable them sell off the stocks still in their storage.
The prices could have fallen much lower, but an amendment to the taxable amount now means that motorists pay higher taxes.
Petroleum products are also subjected to excise duty and seven other levies.
The spotlight will remain on oil marketing companies as new prices for the next month are announced on Sunday.
This is after the regulator recently raised the alarm over artificial shortages in some areas.
Petrol pump prices are expected to jump by at least Sh6.50 per litre in Nairobi starting Monday, with diesel users expecting further relief at the pump with a Sh2 drop per litre, according to Energy and Petroleum Regulatory Authority documents seen by the Nation.
CRUDE OIL PRICES
“Between May and June 2020, international crude prices increased by 33.33 per cent with Murban crude quoted at an average of $23.52 per barrel by close of May 2020. As a result, the prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Illuminating Kerosene (IK) increased by 38.18 per cent, 3.38 per cent and 12.65 per cent, respectively, in the international market,” read the brief.
It will be bad news for those who may have hoarded diesel stocks as they stand to lose their bets on the commodity, which is usually sold in higher volumes compared to petrol.
The coronavirus-driven drop in fuel consumption has pushed dealers on the edge — the low prices could have presented an opportunity for higher consumption.
The travel restrictions and curfew will see dealers continue recording low sales, although slightly higher consumption may result from the revised curfew hours.
International crude prices have experienced a rapid recovery after the Organisation of the Petroleum Exporting Countries (OPEC) agreed to cut production by 9.7 million barrels per day at the start of May. The move has kept the prices above $40 (Sh4,240) per barrel since then.
EPRA warned marketers who were hoarding fuel that they risked losing their licences or financial penalties.
LOWER PRICES
Director-General Pavel Oimeke said the hoarding was mainly being done by the major oil marketers with huge storage facilities and who import large volumes.
“It is illegal and we will take stern action on them should they continue doing that. We have also instructed Kenya Pipeline to alert us when they notice such practices,” Mr Oimeke said.
The dealers unsuccessfully tried to block the lowering of fuel prices last month, decrying low demand due to Covid-19 control restrictions.
They wanted the Ministry of Petroleum to block EPRA from factoring the cheap fuel imports in computing the prices to enable them sell off the stocks still in their storage.
The prices could have fallen much lower, but an amendment to the taxable amount now means that motorists pay higher taxes.
Petroleum products are also subjected to excise duty and seven other levies.