Costly Christmas Season for Kenyans as Fuel Prices Soar

Motorists and households have not been spared by the Energy Regulatory Commission this festive season after it raised the fuel pump prices to be in effect from December 15th to January 14th period.

In the latest review, price of Super Petrol, Diesel and Kerosene increases by KShs. 1.47, KShs 0.03 and KShs. 0.19 per litre. “As a consequence of the average landed cost of imported Super Petrol increasing by 4.21 percent, Diesel by 0.55 percent and kerosene by 3.58 percent,” announced Robert Pavel Oimeke, the Director General ERC.

“Over the same period, the mean monthly US Dollar to Kenya shilling exchange rate appreciated by 0.08 percent from Ksh 103.51 per US dollar in October 2017 to Ksh 103.43 per US dollar in November 2017.”

Genghis Capital Analysts had noted earlier that “The period was marked with steep global oil prices which peaked at two-year high USD 64.27 per barrel. Thus, we expect the elevated global prices to percolate to the latest fuel pump price for Super Petrol, Diesel and Kerosene.”

This is the third month from October that fuel prices have been increasing due to the progressive rise in the crude oil price and the additional weakening of the exchange rate.

In October,  Super Petrol, diesel and kerosene increased by 3.37 shillings, 1.85 shillings and 1.82 shillings per litre respectively in Nairobi.

November, a litre for Super Petrol increased by 1.03 shillings to 102.7 shillings, diesel by 3.70 shillings to 92.41 shillings and Kerosene by 5.05 shillings to 71.23 shillings in Nairobi.

The current inflation rate dropped to 4.73 percent for the month of November falling below 5 percent since February 2013 where it was at 4.45 percent.