Kenyans to pay more in new fuel price review

By Macaharia  Kamau

The Energy Regulatory Commission (ERC) has increased retail prices of fuel following an increase in price of crude oil during the month of December. According to the commission’s monthly price capping guide, kerosene prices will go up Sh2. Super petrol will increase by Sh1.31 while diesel will go up by 21 cents.

Thus beginning this morning, kerosene will retail at Sh85.07 up from Sh83.07 in Nairobi. Many households use the fuel for both cooking and lighting.

Super petrol will from this morning retail at Sh111.059 in Nairobi, an increase from Sh109.28. Diesel will go up marginally to Sh104.73 compared to Sh104.52 in December. The prices will be in place between January 15 and February 14.

In December crude oil prices went up to $113.85 per barrel compared to $112.20 in November. The shilling however weakened slightly, exchanging at a mean rate of Sh86.16 compared to Sh86.26 in November.

Cost of diesel

ERC said the average cost of diesel imported in refined form decreased by a marginal 0.73 per cent in December compared to prices in November. “Over the same period, the average landed cost of imported super petrol increased by 2.86 per cent… kerosene increase by 3.29 per cent,” said ERC in a statement yesterday. The energy industry regulator had also increased prices a month earlier in December, reversing a two-month declining trend in local retail prices seen in October and November.

The new prices could see the cost of living generally go up given the heavy reliance on diesel for transport, energy generation and agriculture.