Fuel Pump Prices Set to Go Up

The Energy Regulatory Commission has recalculated retail pump prices of petroleum products which will be in force from 15th August to 14th September 2015.

Consumers of Super Petrol and Diesel will begin paying the three-shilling a liter fuel levy starting from midnight on 14^th August.

The Energy Regulatory Commission has also said that the slight rise between June and July of the cost of crude oil, as well as the decline of the Kenya Shilling relative to the US dollar, have led it to announce a four shillings and six cents increase in the price of Super Petrol.

However, despite all these factors, the price of Diesel will decline by one shilling and twenty-one cents a liter, while that of kerosene will decrease by four shillings and seventy-two cents a liter.

These changes will be in effect until the 14 of September.

This month’s pump prices took account of an additional KSh 3 per liter in the pricing of Super Petrol and Diesel to cover for the enhanced Road Maintenance Levy (RML) announced in the 2015/2016 national budget.

On the cost of imported, refined petroleum products, the average landed cost of Super Petrol increased by 1.25% from US$ 718.97 per ton in June 2015 to US$ 727.97 per ton in July 2015.

On the other hand, the average landed cost of imported Kerosene during the period decreased by 11.74% from US$ 619.21 per ton to US$ 546.52 per ton.

Additionally, the average landed cost of imported Diesel during the same period decreased by 8.90% from US$ 610.94 per ton to US$ 556.55 per ton.

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