By Macharia Kamau and Morris Aron
Motorists and low income households will dig deeper into their pockets for petrol and kerosene following an upward revision of retail prices for the two products by the Energy Regulatory Commission.
In its latest price capping guide issued Monday, the energy industry regulator increased the retail price of super petrol in Nairobi by Sh2.63 to Sh121.13 a litre up from Sh118.50.
Kerosene went up by 72 cents to Sh87 from Sh86.28 in April.
ERC however reduced the price of diesel but by a marginal 36 cents to Sh108.44 from Sh108.80. The new prices will be in place between May 15 and June 14.
The increase in retail prices of petrol and kerosene takes place despite the shilling having been stable in the month of March and April and exchanging at Sh83 on average while the price of crude in the international markets went down to $121 a barrel in April from $126 in March.
ERC instead promised reprieve to consumers in its next price review in mid June arguing that the stability in the shilling and lower price of crude would be factored in.
“In the last few weeks, there has been a downward trend in the price of crude and refined petroleum products in the international markets. In addition, the local currency has continued to be relatively stable against the US dollar. This is expected to have a positive impact in the next price review,” said Kaburu Mwirichia director general ERC in a statement on Monday.
The new prices for super petrol are close to a historical high of Sh124 seen in December 2011.
The prices are the highest this year having climbed up from Sh111.95 in January. Pump prices had reduced by a matter of cents in the months of February and March before posting a huge increase in April. In April ERC increased prices of diesel by Sh3.67, petrol Sh6.81 and kerosene Sh2.14. It had attributed this to higher international crude oil costs.
The regulator has been issuing capping guide for retail prices of diesel, petrol and kerosene since December 2010, which runs between the 15 of that month to 14 of the following month.
During the period, there have been few reductions in prices much to chagrin of consumers. ERC had cited need to protect consumers when it introduced price controls for the petroleum industry.
The local currency has in the past been a factor that saw month on month increase in the ERC issued retail price guide, having weakened to a historic low of Sh107 to the dollar in October. It has however strengthened to a stable rate of about Sh83 on average over the recent months.
