(Ecofin Agency) - In Kenya, the prices of Fuel dropped in spite of expectation of an increase due to the enforcement of the excise duty Act, Daily Nation reports.

The execution of this excise duty law began on December 1, thereby resulting in a Sh2.06 increase in duty on diesel to Sh10.30 per litre.

According to the Energy Regulatory Commission (ERC) the price of super petrol witnessed a Sh0.4 drop per litre. The prices of diesel will drop by Sh1.15 while kerosene will also drop by Sh1.54 per litre.However, Excise duty on petrol stayed unchanged at Sh19.89 per litre.ERC blames the drop on the reduced cost of products in the international markets by more than 6 % between October and November.

“The general reduction in petroleum prices during this period was a consequence of the average landed cost of imported super petrol decreasing by 0.88 per cent. For diesel, the average landed cost decreased by 6.19 per cent while kerosene decreased by 4.93 per cent from $510.88 per ton to $485.7 per ton”, ERC said in a statement.

The global prices of crude oil dropped recently subsequent to the failure of OPEC in agreeing on a proposal to reduce output in order to control oversupply.

The price of crude oil dropped at approximately $60.65 per barrel in December 2014. Due to this, ERC announced a Sh9.13 drop on the price of super petrol in January, bringing about the lowest fuel prices witnessed four years ago.