Tough Times Ahead as Fuel Prices Skyrocket Hitting Ksh 100

Kenyans should expect tough times as prices of basic commodities are likely to go up following the announcement by the Energy Regulatory Commission (ERC) that the prices of fuel will go up effective 15 February 2017.

“The increase in retail pump prices is driven by a rise in the prices of refined petroleum products, a trend amplified by a slight depreciation of the exchange rate between the Kenya Shilling and the U.S. dollar,” according to a statement.

According to a statement released by ERC motorists will be forced to pay more for a litre of petrol which has gone up by KSh 4.26 shillings, from Ksh 96.01 shillings to Ksh 100.27.

“The main cost driver in petroleum pump prices is the landed cost. In comparison with last month, the landed cost of Super Petrol increased by 8.45% from US$ 530.24 per ton to US$ 575.06 per ton; Diesel increased by 12.07% from US$ 446.84 per ton to US$ 500.78 per ton and Kerosene increased by 7.44% from US$ 487.91 per ton to US$ 524.20 per ton..”

The prices will last until 14th March according to the review 1 litre of diesel will be sold at 89.26 shillings, an increase of 5.03 shillings from the previous price of   84.23 shillings. A liter of kerosene on the other hand is up by 3.75 shillings to 67.19 shillings.

ERC has stated that the increase on fuel prices has been driven by the 20 percent global increase in crude prices which have in place when the cargo was procured in December.

“In comparison with last month, the landed cost of super petrol increased by 8.45 per cent, diesel increased by 12.07 per cent and kerosene increased by 7.44 per cent,” said ERC acting director general Pavel Oimeke at a briefing.

The previous review indicated fuel pump price stability with Super Petrol increasing by 1.81 shillings per litre whereas Diesel and Kerosene declined by 2.99 shillings and 0.12 shillings respectively, majorly attributed to the average landed cost of importation.

In the latest review, Supplier Margins, Distribution costs, Taxes and Levies have remained unchanged.