Transporters and low income household will spend to access diesel and kerosene products for the next one month in new pump prices announced yesterday.
Diesel and kerosene prices have gone up by Sh4.57 and Sh 3.56 per litre respectively while that of Super petrol was marginally raise by Sh0.17 in the latest review by the Energy and Petroleum Regulatory Authority.
The increase in diesel prices will also affect industries and farmers using tractors who will now part with Sh96.40 per litre.
Kerosene mainly used for lighting and cooking will now retail at Sh87.12 per litre in Nairobi.
Pump prices for the three products have increased from Sh106.82, Sh91.82 and Sh83.56, respectively, in the December-January 14 prices.
The prices had increased by Sh0.97, Sh1.12 and Sh1.93 per litre, respectively, last month.
EPRA noted that the price change is inclusive of the eight per cent VAT, “in line with the provision of the Finance Act 2018, the Tax Law(Amendment) Act 2020 and the revised rate for excise duty adjusted for inflation.
Acting Director General Daniel Kiptoo further noted average landed cost of the three products went up with that of super petrol increasing by 1.51 per cent to $323.52 per cubic metre in December.
Diesel went up 13.05 per cent to $332.22 per cubic metre while that of kerosene increased by 9.27 to $302.97 per cubic metre.
The month-on-month jump on pump prices comes amid rising global oil prices which hit a historic low of $20 (Sh2,202) per barrel in April 2019.
Brent crude, the global benchmark for oil prices, picked to above $42 (Sh4,624) per barrel in June in an upward trend that saw it close the year, 2020, at $49.99 (Sh5,504) per barrel.
It has so far average $53.91 (Sh5,936) a barrel this month with a high of $56.22(Sh6,190) yesterday.
The increase in pump prices is expected to influence the cost of living this month after overall year-on-year inflation rose to an eight-month high in December 2020 where it was recorded at 5.62 per cent.
This was up from 5.33 per cent the previous month, Kenya National Bureau of Statistics (KNBS) data shows.
Housing, water, electricity, gas and other fuels’ index increased by 0.59 per cent between November and December 2020.
“This was mainly attributed to increases of 0.76 per cent and 2.08 per cent, in cost of electricity and kerosene, respectively,” KNBS director general Macdonald Obudho said.
Higher fuel prices contributed to a rise in the transport index which increased by 1.15 per cent over the same period, pegged on the upward rise in the retail prices of diesel and petrol by 1.20 per cent and 0.92 per cent, respectively.
