Kenyans tomorrow will wake up to reduced fuel prices as the Energy Regulatory Commission (ERC) reviews fuel prices downwards. A litre of super petrol, in Nairobi, will retail at KES 111.60 from KES 112.61. A litre of Diesel will retail at KES 103.99 down from KES 105.79 while kerosene will retail at KES 83.86 from KES 86.44.

This latest drop in fuel prices can be attributed to drop in international oil prices. As posted by Abu Dhabi National Oil Company, the Free On Board (FOB) price of Murban crude oil lifted in the month of December 2012 was posted at USD 110.75 per barrel, reflecting a marginal decrease of 1.3 percent from USD 112.10 per barrel in November 2012.

Fuel prices could have dropped further if only the Shilling had not depreciated further over the month of December 2013.

The latest drop in fuel prices was within the range of our predicted fuel prices. We had predicted that the price of super petrol would drop to KES 111.67 but it ended up dropping to KES 111.60 reflecting a difference of KES 0.01 from our initial forecast. We projected that the retail price of diesel would drop to KES 104.91 but ended up dropping to KES 103.99, reflecting a difference of KES 0.92 from what we had initially projected. We had projected that the price of kerosene would drop to KES 83.81 but price ended up dropping to KES 83.86, reflecting a KES 0.05 difference from what we had projected.

Keep it here to know why fuel prices dropped.