Fuel pump prices have started dropping with the stabilization of the shilling against the US dollar.
Petrol prices, which had risen to Shs 3,950 in most stations in Kampala, have dropped to Shs 3,650. Diesel is down to Shs 3,450 from Shs 3,650. Some Shell and Total stations are still holding prices at Shs 3,700 for petrol and Shs 3,500, but experts predict that the downward trend will continue in the near-term, as long as the shilling remains stable..
Kerosene remained unchanged at sh2,950 at most filling stations.
Kobil Uganda operations and marketing manager, Peter Ochieng, said the appreciation of the shilling and the improved availability of the oil products in the western part of Kenya were the biggest factors behind the price reductions.
The shilling traded at the average of Shs 2,410 over the past week, down from record highs of over Shs 2,900 in September.
“Between November and December last year, there was scarcity of oil because we would collect it from Mombasa. But now, we get it from Eldoret and Kisumu in western Kenya, which reduces on the transport costs and therefore local pump prices,” Ochieng explained.
Oil experts predict that if the shilling continues to appreciate and supply to stabilize, prices will not change even if international prices rise.
A barrel of crude oil cost $96.20 in December, but had risen to about US$ 100 last week, supporting the argument that a strong shilling would mitigate the effect of international prices.
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written by Coach Outlet Online, April 04, 2012
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