Kerosene, diesel prices up in review
A kerosene pump shop at the Kibera slums. The fuel prizes have hit an all time high as marketers allegedly embarked on hoarding prompting an artificial shortage of fuel in the country. Photo/ Jack Owuor
The energy sector regulator has adjusted fuel prices upward, signalling hard times ahead for consumers of kerosene and diesel whose prices at the pump will increase the most. Retail pump prices will jump the most today in Nairobi for kerosene, by Sh5.68 per litre, as diesel rises by Sh3.99 per litre. Super petrol will rise by Sh2.47 per litre.
This means the cost of fuel consumption will hit city households that use kerosene for lighting and cooking the most as a litre will now cost a maximum Sh79.65. Transport costs will also go up, with oil marketers and dealers across the country reportedly hoarding fuel prior to the pump price announcement.
A litre of automotive diesel in Nairobi will now retail at Sh101.07. Super petrol will sell at a maximum Sh108.95, and Sh105.76 for a litre of regular petrol. The Energy Regulatory Commission said its decision to adjust fuel prices upward is informed by higher actual costs of imported products and those refined locally.
“There has been an upward trend in the prices of crude and refined petroleum products in the international market over the last three months and this is the cause for upward adjustments of the retail pump prices,” the ERC said in an evening statement yesterday. The regulator said the average landed cost of imported kerosene jumped by 10.19 per cent, from $928.33 per tonne in July to $1,022.89 in August. Landed cost of imported diesel jumped by 6.9 per cent, from $933.35 per tonne to $997.78, as super petrol increased by 2.76 per cent, from $997.52 per tonne to $1,025.05 over the same period.
The ERC has warned oil dealers and marketers from selling petroleum products above the retail pump prices cap, threatening to slap a Sh1 million fine on those found contravening the rule, or withdrawal of the operating license or both. “Consumers are requested to be vigilant in reporting non-compliant retailers to the authorities for necessary legal action,” it said.
Maximum prices have been adjusted accordingly for other towns, effectively rendering Mandera the most expensive town in Kenya to buy fuel at. A litre of super petrol, diesel, kerosene and regular petrol will respectively cost Sh121.47, Sh113.59, Sh92.17 and 118.28 in the town.