Fuel Prices Up, Crude Cost and Dollar Cited

Fuel users will from today pay more following yesterday’s monthly review that maintained an upward price review for the sixth straight month since February.

Petrol prices are up by Sh1.31 per litre, diesel by Sh1.25 while kerosene is now Sh0.96 more expensive increases which the Energy Regulatory Commission attributed to higher cost of landed refined oil and deprecation of the shilling against the dollar last month.

Motorists will be charged Sh98.59 for a litre of Super Petrol in Nairobi from Sh97.28 per litre, Sh95.27 from Sh93.95 in Mombasa while those in Kisumu will pay Sh100.51 from Sh99.20. Mandera has the highest pump prices at Sh112.40.

Diesel mainly used for used to run farm and industrial machinery as well as cargo and passengers vehicles has been increased by a lower margin of Sh1.25 compared to Sh3.97 per litre in June.

It will now retail at Sh84.56 in Nairobi, Sh81.27 in Mombasa, Sh86.62 in Kisumu and Sh98.37 in Mandera.

Kerosene users also experienced a lower Sh0.96 rise compared with Sh2.54 last month per litre of kerosene and is now selling at Sh62.74, Sh60.00, Sh64.59 and Sh76.55 in Nairobi, Mombasa, Kisumu and Mandera respectively.

Crude oil price dropped to $63.70 a barrel last month from $65.75 in May, but the Energy Regulatory Commission said it takes at least one and a half month for Kenyans to enjoy the benefits.

The ERC said a tonne of refined petrol was 2.22 per cent higher to $718.97 in June, kerosene went up by 2.20 per cent to $619.21 while diesel posted the lowest drop of 1.41 per cent to $610.94.

The increase is largely attributable to a 1.31 per cent depreciation of the shilling to an average of 98.13 in June compared with 96.86 in May.

Hopes of cheaper prices next month on lower crude prices in June are however slim given the continued fall of the shilling against the dollar , while the Sh3 increase in fuel levy on petrol and diesel is likely to be factored in..

Kenya depends on refined oil after the closure of the inefficient Kenya Petroleum Refineries in Mombasa in September 2013.