No respite for motorists as prices of petrol and diesel head north

PHOTO: COURTESY

Consumers will spend more on fuel after prices of all the three commodities were revised upwards in the latest review by Energy Regulatory Commission (ERC).

Following a marginal rise in global oil prices in the period up to June, super petrol has increased by Sh2.20, diesel by Sh1.27 and kerosene will be up by Sh1.03 in Nairobi.

To fuel within Nairobi, motorists will require Sh95.13 for a litre of super petrol while diesel will cost Sh84.51. Kerosene, which was slapped with Sh7.21 excise duty in July, will now cost Sh62.48.

“The changes in this month’s prices have been as a consequence of the average landed cost of imported super petrol increasing by 3.31 per cent, up from $505.02 (Sh51,235) per tonne in June to $521.72 (Sh52,930) per tonne in July 2016,” said regulator in a statement to media houses.

During the same period, ERC Director General Joseph Ng’ang’a added, diesel increased by 3.18 per cent to $469.10 (Sh47,591) per tonne while kerosene went up by 2.86 per cent to $493.86 (Sh50,103) per tonne.

This increase, added to marginal depreciation (0.19 per cent) in Kenyan shilling to the US dollar, the regulator explained, formed the basis for the new prices.

As a result, residents of Mombasa, which is the town closest to the Port, will now buy a litre of super petrol at Sh91.72, while diesel will go for Sh81.12. For kerosene, consumers will have to part with Sh59.64.

Residents of Nakuru will pay a maximum of Sh95.89 for a litre of petrol. A similar quantity of diesel will cost at most Sh85.45 while kerosene will be bought at Sh63.36.

In the prices that took effect midnight, a litre of petrol will cost Sh97.14 in Kisumu, while in Eldoret, it will retail at Sh97.07. A motorists will require Sh86.70 to purchase a litre of diesel in Kisumu, while fueling within Eldoret one will require Sh86.63.

Kerosene will retail at Sh64.43 in Eldoret, while in Kisumu, oil marketers will be required to sell it to a maximum of Sh64.43 per litre. In Kakamega, petrol will cost Sh97.21, while diesel will be sold at Sh86.77 and Kerosene will retail at Sh64.50.

The prices, which will run until mid of September will see residents of Mandera pay Sh108.94 for a litre of petrol, being the most expensive town to fuel. A litre of diesel will cost Sh98.32, while kerosene will now retail at Sh76.29.

According to the regulator, the free on board price for murban crude oil lifted in July was posted at $44.60 (Sh4,525) per barrel, being a decrease of 9.07 per cent from $49.05 (Sh4,976) per barrel in June.

Consumers missed out on this drop because there is usually a time lag of up to 45 days between placement of an order and delivery of the cargo, meaning that most of the cargoes used for this month’s prices were delivered in June.

Taxes continue to stand between consumers and the call for larger price drops. Taxes and levies on petrol amount to Sh38.97 per litre, while for diesel it stands at Sh29.39. Some Sh8.22 per litre of kerosene consumed goes to the State.

Oil importers get Sh7 and dealers Sh3.89 for every litre sold. Storage and distribution costs vary with the proximity to the Port.

To transport petrol to Nairobi, a litre costs Sh4.43, while for diesel it requires Sh4.21. Moving a litre of kerosene to Nairobi costs Sh3.60.