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January 16, 2019

The poor biggest losers as kerosene price increases by Sh5

A fuel dispenser as pictured in Nairobi on November 23, 2017./ EZEKIEL AMINGÁ
A fuel dispenser as pictured in Nairobi on November 23, 2017./ EZEKIEL AMINGÁ

Poor, rural households are the biggest losers in the June fuel price review as they will pay Sh5.88 more for kerosene.

From midnight  to July 14, when the Energy Regulatory Commission will carry out another review, a litre of kerosene will retail at Sh84.10.

The costs of super petrol and diesel also went up, by Sh1.64 and Sh4.96 respectively.

The regulator attributed the increase in this month’s prices to the average landed cost of imported refined petroleum products.

In Nairobi, super petrol will retail at Sh108.81 per litre while diesel will go for Sh103.6.

A litre of super petrol in Mombasa will cost Sh105.52, diesel Sh100.31 and Kerosene Sh81.32.

In Kisumu, motorists will pay Sh110.75 for a litre of super petrol, Sh105.75 for diesel and Sh86 for kerosene.

The ERC is currently pushing for the government to increase the tax on kerosene to save the export market. This is likely to make life more difficult for those who use it to cook.

Their misery will be compounded if the cost of maize flour rises, as projected by Treasury CS Henry Rotich, following the reading of the 2018/19 budget on Thursday.

Rotich has proposed to exempt flour products from tax, meaning manufacturers will pass the burden to consumers.

Read: Inside the Sh3 trillion 2018/19 budget

More on this: Cost of unga, milk, drugs to go up in budget

The regulator recently raised concerns about the high rate of kerosene consumption in the country and said that increasing tax on the commodity will help address the cartels problem.

“Several unscrupulous cartels in the market mix kerosene with diesel, causing 27 million litres of kerosene to go into vehicles, damaging them and affecting the export market,” Director General Pavel Oimeke said.

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