Tough times as fuel prices go up again

By Macharia Kamau

Kenyans should brace themselves for further hikes in commodity prices following the latest increase in fuel prices.

Energy Regulatory Commission early in the week increased the price of super petrol, diesel and kerosene citing a weak shilling and slight increase in prices of crude oil in the international markets.

In Nairobi, price of super petrol per litre went up Sh1.28 to Sh117.22, diesel Sh2.86 to Sh108.97 and kerosene Sh2.80 to Sh88.96.

Other than the cost of manufactured goods, where prices have already gone up and the upward swing is expected, operators of public service vehicles say further increase in fare is inevitable.

"Any additional cost of running a business will always be passed onto consumers," said Samuel Kimutai chair of Matatu Owners Association.

"Whether the service providers decide to delay the increment in price or absorb some aspects of the added costs, increase in pricing is inevitable when there is an increase in operational costs."

He said price was just one aspect that had seen the cost of operating public service vehicles go up. Manufacturers of auto parts, including vehicle units and tyres were also taking a beating from both high fuel costs and a weak shilling and have adjusted upward prices of their products.

Consumer Federation of Kenya (Cofek) said the month on month increase since the price-capping regime came into effect demonstrated a failure by Government institutions in the petroleum sub-sector.

The lobby noted that the regulation had failed in its objectives, as it was initially aimed at protecting consumers from oil marketers that were said to have been raking in ‘super profits’ at the expense of both consumer and economy.

Substantial Amount

"The point is that Nock and ERC have a mandate to all stakeholders in the petroleum sector but they have miserably failed when it comes to protecting the consumer," said Edwin Wanjawa, Cofek chief executive.

"The reasons cited of a weak local currency and the high international prices are genuine but the consumer pays a substantial amount due to the inefficiencies in the distribution and supply system, which the two agencies can easily deal with."

The lobby group has filed a court case and is seeking the high court’s declaration that government agencies, including the Energy Ministry, National Oil Corporation and ERC have failed to protect consumers from high fuel and food costs.