Diesel and super petrol prices are expected to fall by close to Sh20 a litre and Sh10.59 a litre respectively which is the largest margin prices have reduced since 2007.
A brief sent to the Petroleum Ministry by the energy regulator indicates that the retail price of diesel will fall to Sh78.07 per litre in Nairobi from Sh97.56, while the retail price off super petrol will be reduced to Sh82.28 from the current Sh92.87, representing a Sh10.59 drop. Kerosene costs will increase by 3pc to Sh79.79.
The fuel prices crumbling is as a result of the plunge in crude oil prices in the international market after a fallout between Saudi Arabia and Russia to cut production in the wake of the global Covid-19 pandemic.
The price fall is set to significantly lower the costs of transport, mechanised farming and industrial production in the country.
This follows the earlier projection by the Energy and Petroleum Regulatory Authority (EPRA) director-general Pavel Oimeke who had said the effect of the crash in crude oil prices would be reflected in the retail price of diesel in subsequent reviews after the regulatory advisory announced that Petrol prices had dropped by Sh18 last month.
The prices would have fallen to even new lows had it not been for the new levies imposed on fuel last month following changes to the laws that also introduced tax reliefs to protect the economy against the Covid-19
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