Motorists, households to pay more after fuel prices increase

The Energy Regulatory Commission reviewed upwards the fuel pump prices with Super Petrol, Diesel and Kerosene increasing by KES 3.37, KES 1.85 and KES 1.82 per litre (respectively) in Nairobi.

The price increment has been on account of increased average landed cost of the three imported products in the lagged 45-day period.

“The changes in this month’s prices have been as a consequence of the average landed cost of super petrol, diesel and kerosene,” the Energy Regulatory Commission Ag. Director General Pavel Oimeke explained.

Read: High Import Cost pushes September Fuel Prices higher

The landed cost of super petrol, diesel and kerosene are reported to have increased by 7.42, 6.13 and 4.76 percent respectively between August and September.

“Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.24 percent from Sh103.37 to Sh103.12 in September,” Oimeke explained.

Genghis Capital Analysts note that the sustained monthly fuel pump review increment will trickle down into upcoming inflation print:  directly, as tracked by fuel inflation which has averaged 2.98 percent in first nine months in 2017 against 1.46 percent in a similar period last year and indirectly, with subdued demand pressure particularly the usage of Kerosene by low-income earners.