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More Pain Ahead as Prices of Kerosene and Diesel Skyrocket

BY Soko Directory Team · June 15, 2018 06:06 am

Kenyans will have a painful month ahead on top of what they are already facing thanks to the Energy Regulatory Commission (ERC).

Fuel consumers will now have to dig deeper into their pockets after the ERC hiked prices for kerosene and diesel by more than 5 shillings.

Diesel, from Thursday midnight, started retailing at the cost of 4.96 shillings more per liter while kerosene jumped by 5.88 shillings. Super petrol is up by 1.64 shillings. The new fuel prices are set to increase the inflation rate for the month of June.

Motorists in Nairobi will pay 108.9 shillings per liter for petrol, 103.60 shillings per liter for diesel and 84.10 shillings per liter for kerosene.

According to ERC, the increase in prices was based on the cost of landed cost. The landed cost of super petrol rose by 2.8 percent during the period that the cargo arrived in the country. The landed cost of went up by 8.9 percent while that of kerosene went up by a whopping 9 percent.

More than 60 percent of households in Kenya use kerosene for lighting and heating. The increase in prices has come down heavily on the majority of them. At the beginning of the year, the government had plans of facing off kerosene but failed to provide an alternative for Kenyans.

The increase in the prices of diesel is set to impact negatively on virtually all Kenyans. Most public service vehicles are powered by diesel and the increase in prices means transport costs in terms of fare will increase.

The manufacturing sector relies heavily on diesel-powered generators. The increase in diesel prices will definitely increase the cost of production. Manufacturers will have to pass the heat down to consumers in order to recover their costs. This implies that the prices of commodities are set to go up.

The inflation rate, which has been relatively low for the past few months is also set to rise as the cost of products rises.

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