Prices for petrol and diesel slid down further yesterday as EWURA made regulatory intervention history with diesel to be sold at 1,600/ and petrol 1,842/- per litre effective today.
In a press release outlining its latest regulatory intervention, the Energy and Water Utilities Regulatory noted that prices for diesel have dropped from 1,747/- while those for petrol have dropped by 56/- per litre.
The regulatory authority’s EWURA’s Director General, Mr Felix Ngamlagosi, said the highest drop in diesel was a result of the ongoing price decline in the world market and low transportation costs.
He, however, said that, there was no importation of kerosene that would be consumed for February 2016.
Therefore, price for kerosene has remained at 1,699/- per litre -- applicable since January 2016.
While agreeing that there was a strong relationship between the decline in global and local prices, Mr Ngamlagosi, however, pointed out that they do not go concurrently with prices in the local market as it takes two months to feel the effect.
“It is important to note that prices fall in white products (not crude) in the world market contribute to about 46 to 49 per cent in the prices applicable at local market (according to prices of January 2016). Therefore, the drop in the world market can not be 100 per cent in the local market,” explained Mr Ngamlagosi.
Mr Ngamlagosi also requested the public to dismiss unfounded and false rumours that EWURA was in favour of lowering fuel prices because the regulator’s levy is pegged on price upswings.
He explained that EWURA charges levy based on litres imported and consumed locally.
“We could understand if one claims that EWURA has increased consumption (quality of litres). But increased prices have nothing to do with our levies,” he remarked.
Daily News
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