9 December 2011, Sweetcrude, NAIROBI – The kenyan government says fuel pump prices will fall by between three to five shillings per litre at the next monthly review, boosting hopes the east African country’s double digit inflation may soon start easing.
“The Energy Regulatory Commission is finalising the computation of the pump prices and preliminary estimates show that the fuel prices will come down by between 3.00 and 5.00 (shillings) per litre from December 15,” the Energy Ministry said in a statement.
Soaring consumer prices, particularly food and fuel, in the region’s biggest economy pushed the rate of inflation to near 20 percent last month and have sparked a wave of low-level industrial action against the rising cost of living, Reuters report said.
The regulator raised the price of super petrol in the capital, Nairobi by 3.63 shillings to 124.13 shillings per litre last month. Diesel rose 3.36 shillings to 114.30 shillings and kerosene climbed 4.92 shillings to 94.87 shillings a litre.
The ERC had previously blamed the high fuel prices on the ailing shilling after it hit a record low of 107 per dollar in October. The shilling has since gained 16.4 percent to trade at 89.30/50 against the dollar.
The regulator also sought to allay fears of an impending fuel shortages after a spillage at a depot in Nairobi hit distribution.