NAIROBI, Kenya, Mar 14 – The price of fuel in the country is set increase from midnight Saturday after The Energy Regulatory Commission (ERC) raised the maximum allowable price of super petrol, diesel and kerosene.
The ERC announced that the price of super petrol will increase by Sh4.75 68 a litre across the country for the next month, while kerosene will be Sh3.35 higher. Diesel will increase by Sh0.68 per litre.
This comes months after the country enjoyed significant drops in the prices owing to lower global oil prices.
The ERC Director General Joseph Ng’ang’a attributed the increase to rebounding of global crude oil prices in February leading to an increase in the prices of refined petroleum products in the international market.
“Crude oil prices were at their lowest in December at $46 per barrel. Since then they have rebounded and we are at a level of about $58 per barrel and that will have an impact in the refined products,” he said.
In Nairobi super petrol will retail at Sh89.46 per litre, diesel will be sold at Sh76.20 a litre, while kerosene will retail at Sh55.75 a litre.
In Mombasa, a litre of super petrol will sell at Sh86.16, diesel will retail at Sh72.93 and kerosene at Sh53.03 while in Nakuru a litre of super petrol will sell at Sh90.21, diesel will retail at Sh77.13 and kerosene at Sh56.60.
In Kisumu, a litre super petrol will be sold at Sh91.42, diesel will retail at Sh78.34 and kerosene at Sh57.62 a litre while in Eldoret a litre of super petrol will sell at Sh91.36, diesel will retail at Sh78.34 and kerosene will be sold at Sh57.62.
“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,” said the ERC Director General.
Ng’ang’a also countered a report by the World Bank which said the recent drop in prices of petroleum products in the international markets should have translated to a proportional drop in the local pump prices of 39 percent saying that the report relied on crude oil prices rather than the prices of refined products whose market dynamics are different.
“The country no longer imports crude oil since September 2013,” he added pointing out that the landed cost of petroleum products experiences a delivery lag of about 30 to 40 days that accounts for the difference between the changes in the international prices and the changes in the calculated local pump prices.
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.