Fuel prices rise in latest ERC review

Fuel prices rise in latest ERC review
File image of a fuel pump. PHOTO| COURTESY

Continued increases in global crude and refined oil prices have pushed the local cost of fuel up for the next one month.

The latest Energy Regulatory Commission (ERC) fuel price review indicates that the cost for a liter of super petrol will increase by Sh1.03 and will retail at Sh102.70 in Nairobi.

The rising cost of fuel is set to exert inflationary pressure on consumers as crude oil prices continue to rise.

The shilling has also come under pressure from the dollar during the month exchanging at a monthly average of Sh103.51 further pushing up the cost of fuel.

The cost of a liter of diesel is up Sh3.70 and will retail at Sh92.41while kerosene will experience the highest cost jump of Sh5.05 retailing at Sh71.23 in the capital city.

Fuel price controls have been in effect since 2010 as the government seeks to cushion consumers from arbitrary price changes by oil marketing companies.

The energy regulator sets the maximum fuel price adjusted every month factoring in currency variations, transport costs as well as the global crude oil price to set the price.

The Ministry of Energy and Petroleum is at the same time mulling plans to harmonize fuel prices across the country.

Currently fuel prices vary depending on the proximity to the port of Mombasa with motorists in Mandera paying the highest for a liter of super petrol at Sh116.51 while those in Mombasa pay  Sh99.42 per liter.

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Story By Dennis Otieno
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