Bloomberg News

Kenya Cuts Gasoline Prices by 0.4% After Drop in Global Cost

June 14, 2011

(Updates with refinery shutdown in last paragraph.)

June 14 (Bloomberg) -- Kenya will cut the cost of so-called super petrol, the most commonly used gasoline, by 0.4 percent in the capital, Nairobi.

The decision will reduce the price of a liter (0.3 gallon) of super petrol to 114.93 shillings ($1.29) from tomorrow until July 14, the Nairobi-based Energy Regulatory Commission said in its monthly review of fuel costs, emailed today. It follows a “marginal” decrease in the crude price last month. Nairobi accounts for as much as 55 percent of fuel consumption in the East African country.

Kenya’s inflation rate rose for the seventh straight month in May to a 25-month high of 13 percent on higher food and fuel costs. The transport price index, which includes the cost of petrol, rose 22 percent. The central bank increased its benchmark interest rate for the second time this year in May, by a quarter-point to 6.25 percent, to cool inflation.

The price of kerosene, which is used for cooking and lighting, will drop by 6.9 shillings per liter in Nairobi after the government removed excise duty on the fuel, while diesel will decrease by 1.72 shillings per liter, the commission said.

Mombasa-based Kenya Petroleum Refineries Ltd., jointly owned by Essar Energy Overseas Ltd. and the government, shut down one of its manufacturing units for maintenance last month, which had a “negative impact” on output, the commission said.

--Editors: Ben Holland, Karl Maier.

To contact the reporters on this story: Sarah McGregor in Nairobi at

To contact the editor responsible for this story: Andrew J. Barden at

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