Households to Feel the Pinch as Petrol Prices Go Up by 5.43 Shillings

As predicted by some reports earlier during the week, the Energy and Regulatory Commission (ERC) has increased fuel prices in its May 14 monthly rate announcement pushing petrol prices by more than 5 shillings.

According to the review which will be effective beginning May 15, the new prices of Super petrol have been increased by 5.43 shillings per liter.

Households will also have to pay 2.40 shillings more for every liter of kerosene while motorists using diesel will have to part with 2.24 shillings more for the same quantity.

The new prices have factored in the 8 percent VAT as mandated by the commission.

SEE ALSO: Fuel Shortage Looms as Price Hike is Anticipated Ahead of ERC Announcement

Nairobians will now have to pay 112.03 shillings for a liter of Super petrol, 104.37 for a liter of diesel, and 104.62 shillings for the same quantity of kerosene.

Prices are marginally better in Mombasa compared to Nairobi. The new prices for a liter of fuel in Mombasa stands at 109.51, 101.7, and 102.00 shillings for Super Petrol, Diesel and Kerosene, respectively.

In Kisumu, the new price for Super Petrol is 113.98, Diesel 106.32, and Kerosene 104.62 shillings, and respectively.

According to a press statement released by ERC, the increase in fuel prices have been attributed to the average landed cost of imported Super petrol, which went up by 11.39 percent from 620.54 US dollars per ton in March 2019 to 691.67 dollars in April 2019.

READ: Tough Times Ahead As Fuel Prices Spike in New Review

Similarly, the cost of diesel in global markets hiked by 2.75 percent 624.51 US dollars for a ton to 641.67 dollars per ton during the same period.

Kerosene shot up 13.27 US dollars to 675.82 per ton, a 2 percent increase from the price recorded in March 2019.

Inflation

The increase in the recent fuel prices is likely to lead to the rise in the inflation rate.

Inflation rate in Kenya is often anchored on the prices of food, other consumables and the cost of transport.

The manufacturing sector mostly relies on diesel-powered generators for power and with the increase in the price of diesel, the cost of production will also go up.