Kenyans might have to contend with higher fuel prices next month following a sustained upward trend in crude oil prices.

Oil prices have doubled since the beginning of the year, from under $40 in January to $80 a barrel last week.

In November, crude oil prices seesawed between $75 (Sh5,625) and $82 (Sh6,150) a barrel.

And the increase is slowly starting to reflect on local pump prices, which have moved up after months of stability to about Sh83 for a litre of petrol and Sh72 for diesel.

A spot check showed that most of the fuel stations in Nairobi’s central business district have increased their prices by more than a shilling, with petrol going for Sh85.40 and Sh76.90 in retail outlets run by major oil marketers.

An official in a oil marketing company said current supplies in the market were bought more than a month ago when crude oil was being sold at about $75 a barrel.

"The price for crude oil in the international market has gone up again and it is likely that local pump prices will go even higher towards end of year," he said.

By end of last week, only a few retail outlets within the CBD that had not increased prices, but analysts said it was a matter of time before they effected changes.

The current prices are the highest since last year, when a litre of petrol rose to Sh110, a reflection of the increase in crude oil prices that touched a record high of $147 a barrel last July.

According to findings of a survey done by Research International, many motorists have resorted to employing cost saving techniques such as using their vehicles when it was absolutely necessary and taking time to compare prices at different petrol stations to get the best price.

Motorists are also running several errands at once as well as adopting better driving habits to reduce fuel consumption.

 

 

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