Kenya: Crude costs, weak Shilling push fuel prices up

Fuel at station - Nairobi

Fuel at station – Nairobi

16 May 2015, Nairobi — The Energy Regulatory Commission (ERC) has announced an overall increase in the price of fuel across the country for the month of May.

The ERC announced that the price of super petrol will increase by Sh3.54 a litre across the country for the next month, while diesel will be Sh1.86 higher. Kerosene will increase by Sh2.03 per litre.

The ERC Director General Joe Ng’ang’a said the increase was attributable to increase in the international crude oil prices that went up by seven percent leading to an increase of between 2.7 percent and 5.2 percent in the landed cost refined petroleum products.

“The depreciating Kenya shilling compared to the US Dollar had a negative impact on the resultant local pump prices due to the fact that petroleum trading worldwide is dollar denominated,” Nganga said.

In Nairobi a litre of petrol will retail at Sh92.89 a litre, diesel will retail at Sh79.34 a litre and kerosene will retail at Sh59.24.

In Mombasa super petrol will go for Sh89.58 while diesel and kerosene will retail at Sh76.06 and Sh56.51 respectively.

In Nakuru super petrol will sell at Sh93.62, diesel at Sh80.27 and kerosene at Sh60.08 while in Eldoret super petrol will sell at Sh94.76, diesel at Sh81.41 and kerosene at Sh61.11.

In Kisumu a litre of super petrol will be sold at Sh94.83, diesel will retail at Sh81.48 and kerosene at Sh61.10.

“The purpose of the fuel pricing regulations is to cap the pump prices of the products which are already in the country, such that the importation and other prudently incurred costs are recovered, while ensuring reasonable prices to consumers,” Nganga said.

Nganga also announced that Kenya was ranked among the top five countries in Sub- Saharan Africa that have passed nearly 100 percent of the benefits accruing from reduced global oil prices to the finale consumers.

The report ranked Kenya alongside Mauritius, Senegal, Zambia and Malawi.

The commission has installed a hotline number 0708 444 000 for people to report any fuel marketing companies that operate above the maximum allowable prices.
*Kennedy Kangethe – Capital FM

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