Fuel pump prices edge closer to Sh100 mark as the Kenya shilling takes hit
By Paul Wafula | July 15th 2015
NAIROBI: The retail price of fuel is racing towards the Sh100 per litre mark, an indication of the impact of a weakening shilling and growing appetite for gasoline imports.
Motorists will from this morning start feeling the extra pain at the pump after the Energy Regulatory Commission (ERC) raised prices of Super petrol by Sh1.31 per litre and diesel by Sh1.25 per litre. Similar quantity of Kerosene will now cost Sh0.96 more.
Super petrol will now retail at Sh95.27 per litre in Mombasa, Sh98.59 in Nairobi and Sh100.51 in Kisumu. Consumers will now part with Sh81.27 per liter of diesel in Mombasa, Sh85.56 in Nairobi and Sh86.68 for a similar quantity in Kisumu.
Kerosene users will continue to enjoy lower prices comparatively, with the new increments pricing a litre at Sh60 in Mombasa, Sh62.74 in Nairobi and Sh64.59in Kisumu. The new valuation became effective from midnight Tuesday.
The latest increment is set to put additional pressure on the cost of living at a time when the Jubilee administration is counting on low inflation rates to deliver its growth targets.
"This was a result of the average landed cost of imported Super petrol increasing by 2.22 per cent, up from $703.37 per tonne recorded in May, to $718.97 per tonne in June 2015," said Engineer Joe Ng'ang'a, ERC's Director General.
The ERC boss said the average landed cost of imported diesel between May and June increased by 1.41 per cent, from $602.46 per tonne to $ 610.94 per tonne, while the average landed cost of imported Kerosene during the same period decreased by 2.2 per cent, from $633.13 per tonne to $619.21 per tonne.
The mean monthly exchange rate for the US dollar to Shilling depreciated from Sh96.86 per in May 2015 to Sh98.13 recorded in June 2015. This represents 1.31 per cent depreciation.
The regulator has continued to defend the price regulation for petroleum products to reign in rogue oil marketers, keen to make huge profits at the expense of consumers. But the price controls have also been blamed for killing competition in the industry.
"The purpose of the fuel pricing regulations is to cap the pump prices of the products, which are already in the country, so that the importation and other prudently incurred costs are recovered, while ensuring reasonable prices to consumers," the ERC said. Before Tuesday's price review, super petrol was retailing at Sh93.95 per litre in Mombasa, Sh97.28 in Nairobi and Sh99.20 in Kisumu.
Consumers were paying Sh80.02 per litre for diesel in Mombasa, Sh83.31 in Nairobi and Sh85.44 for a similar quantity in Kisumu. Kerosene sold for the lowest price, having retailed for Sh59.04in Mombasa, Sh61.78 in Nairobi and Sh63.63in Kisumu.
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MONEY & MARKET