Fuel prices may fall by up to Sh5 next week, says ministry

Fuel prices are expected to fall by between Sh3 and Sh5 on Wednesday when new pump prices are released, the Energy Ministry said on Thursday.

This will be the first time the Energy Regulatory Commission will be announcing a price reduction since it started to regulate prices in December last year.

“Preliminary estimates show that the fuel prices will come down by between Sh3 and Sh5 a litre from December 15, 2011,” a statement signed by Energy Permanent Secretary Patrick Nyoike said.

MPs’ threat

Last month, the energy commission announced an increase in pump prices of Sh3.63 a litre of super petrol, Sh3.36 a litre of diesel and Sh4.92 a litre of kerosene.

Members of Parliament threatening to disband it accusing it of failing to stabilise fuel prices.

Independent oil marketers accused the regulator of colluding with the big oil companies to fix prices.

“Either the commission does its work or we’ll be the first to push for its dissolution,” Mr Emilio Kathuri, MP for Manyatta and member of the Parliamentary select committee on Energy, said then.

Gas shortage

Mr Nyoike also clarified that the current shortage of cooking gas is expected to ease once a ship with 2,500 tonnes arrives in Mombasa.

The price of gas has nearly doubled in the past nine months, which has been blamed on insufficient storage.

Mr Nyoike also defended the Kenya Pipeline Company against accusations of failing to provide fuel at the Nairobi depot for three days that affected supply.

“The supply of super petrol, diesel and kerosene by the Kenya Pipeline Company from Nairobi to Mombasa was interrupted following vandalism of a 132 KV power line tower supplying pump stations along the Mombasa-Nairobi line.

“As a result, there was no fuel received at the Kenya Pipeline Company, Nairobi depot, for three days,” he said.