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Economy

Petrol price up to Sh101 after three month drop

fuel prices
The energy sector regulator has increased prices of super petrol, diesel and kerosene, reversing three months of consecutive fuel price cuts. FILE PHOTO | NMG 

The energy sector regulator has increased prices of super petrol, diesel and kerosene, reversing three months of consecutive fuel price cuts.

In a price review effective from today, the Energy Regulatory Commission (ERC) raised the price of a litre of super petrol by Sh1.26, that of diesel by Sh0.65 and that of kerosene by Sh2.96.

A litre of petrol will cost Sh101.35 in Nairobi while diesel will be priced at Sh96.61. Kerosene will retail at a maximum of Sh99.46 per litre.

“Changes in this month’s prices have been as a consequence of the average landed cost of imported super petrol increasing by 3.71 to $568.55 per tonne in February, diesel increasing by 2.79 to $561.64 per tonne and kerosene by 9.16 per cent to $650.29 per tonne,” said the ERC in a statement last evening.

The latest hike reflects rising global oil prices since January. Crude oil hit $66.35 per barrel in February.

The ERC review is dependent on the average landed cost of imported oil, Free On Board (FOB) price of Murban crude oil lifted as well as the mean monthly dollar to shilling exchange rate. The shilling appreciated by 1.12 percent against the dollar to 101.17 in February.

Crude oil prices

Crude oil prices were on the downturn in the second half of 2018, but started rebounding from $59.50 per barrel in December and touched $60.95 in January.

In last month’s review, ERC lowered the price of a litre of super petrol, diesel and kerosene by Sh4.12, Sh6.28 and Sh5.20 respectively.

The rise means increased cost of fuelling for motorists as well as higher costs for running machines by manufacturing firms. Households that depend on kerosene will also pay higher to cook and light.

Helped by the falling fuel prices, firms reported cooling inflationary pressures from purchase prices, according to Stanbic Bank Kenya Purchasing Managers’ Index for February that said input prices for manufacturers increased at the slowest pace in 16 months.

The rate of inflation fell in February to 4.14 percent, being the lowest in six months as the prices of food commodities and transport eased.

The Kenya National Bureau of Statistics (KNBS) indicated that the drop from 4.7 percent year-on-year in January was the lowest since August last year when it closed at 4.04 percent.

Fuel prices have a huge impact on the cost of goods and services, as the cost of transportation is transmitted across the economy.

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