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Economy

Fuel prices go up for fourth month in a row on increased import costs

Maximum pump prices in Kenya have risen for the fourth straight month in the December fuel review by the energy regulator, as global crude prices went up in the international market.
Maximum pump prices in Kenya have risen for the fourth straight month in the December fuel review by the energy regulator, as global crude prices went up in the international market. FILE PHOTO | NMG 

The maximum pump prices in Kenya have risen for the fourth straight month in the December fuel review by the energy regulator, as global crude prices went up in the international market.

The Energy Regulatory Commission (ERC), which sets fuels prices across the country every mid-month, on Thursday said the price of super petrol jumped the most by Sh1.47 per litre, while diesel and kerosene added Sh0.03 and Sh0.19 per litre respectively.

This, the regulator said, was due to increased import costs, with super petrol going up by 4.21 per cent to $636.22 per tonne in November from $610.50 in October.

The cost of importing kerosene went up 3.58 per cent to $579.64 per tonne, while that of diesel inched up 0.55 per cent to 543.63 per tonne.

“The prices have slightly increased impacted by the cost of importing the product,” Mr Robert Oimeke, ERC director-general , told the Business Daily.

“The cost per barrel of crude oil increased from $58 to about $63. These are really demand and supply forces that are beyond Kenya’s control and we may not predict where the next time crude oil prices are going up,” he added.

Pain for motorists

The increase in pump prices will see motorists in Nairobi pay Sh104.17 per litre of super petrol and Sh92.44 for diesel.

Consumers at the port city of Mombasa will pay the least for their fuel with the maximum pump price set at Sh100.89 for petrol and 89.17 for diesel.

Those at the border town of Isebania will pay the most, with petrol retailing at Sh108.21 and diesel at Sh96.69 per litre.

Kerosene, which is used by many households for cooking, will retail at Sh71.42 in Nairobi.

A slight appreciation in the shilling against the dollar of 0.08 per cent in November did little to cushion the consumers from fuel price increase.

The government started setting fuel prices in 2010 after prices shot up.

Kenya, which is yet to start processing or exporting its oil deposits, is a net petroleum importer and changes in fuel prices have a significant impact on inflation.

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