An increase in the cost of crude oil in the international markets has led to the higher cost of fuel locally, with kerosene users being the worst hit as prices increase by 27 per cent.
Kerosene, which is mainly used by low-income earners and rural households for cooking and lighting, went up by Sh18 per litre and will retail at Sh83.65 in Nairobi.
The retail price of diesel went up by Sh2.76 per litre and will go for Sh94.63 in Nairobi, while super petrol increased by Sh3.47 and will retail at Sh103.95 per litre in the capital.
The Energy and Petroleum Regulatory Authority (Epra) yesterday said the price hike was due to an increase in the cost of imported fuel, where kerosene, for instance, had gone up by 127 per cent.
“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol increasing by 14.18 per cent … diesel increasing by 10.30 per cent … and kerosene increasing by 127.87 per cent from $126.39 (Sh13,650) per cubic metre to $288.01 (Sh31,105) per cubic metre,” Epra said in a statement.
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Crude oil prices crashed in March, owing to a combination of factors, including a sharp decline in demand for oil globally as countries effected measures to control the spread of coronavirus.
Demand has been going up recently, as economies cautiously reopen.
“The Free on Board price of murban crude oil lifted in July 2020 was posted at $44.28 (Sh4,782) per barrel, an increase of 21.85 per cent from $36.34 (Sh3,924) per barrel in June 2020,” said Epra.