More pain at the pump as petrol, diesel costs rise

Motorists are set to feel a further pinch at the pump as petrol and diesel prices increased for a second consecutive month in the latest costs review by the Energy Petroleum Regulatory Authority (EPRA).

Petrol prices have increased by an average of Ksh.2.67 across the board while diesel costs have picked up by a further Ksh.2.13 per litre.

Kerosene prices have meanwhile reduced by Ksh.1.26 per litre.

The resulting costs follow an increase to the average landing costs of both petrol and diesel imports.

A litre of petrol will now retail at Ksh.112.87 in Nairobi with the cost of diesel peaking at Ksh.104.45 per litre. The costs of Kerosene will meanwhile come down to Ksh.102.69 for every litre.

The continued increase in general fuel costs is expected to pack the pressure on consumer spending abilities with the inflation rate in January having been retained at a higher 5.78 percent ceiling from 5.82 percent at the end of 2019.

Nevertheless, global oil prices are tipped to decline in the first quarter for the first time in over a decade due to the coronavirus outbreak in China which has driven down general oil demand.

On Thursday, the International Energy Agency (IEA) projected global oil demand to subside by 435,000 barrels per day (bpd) setting the tone for downward market price readjustments.

Even so the Organization of Petroleum Exporting Countries (OPEC) is set to follow up weaker demand with slashes to output in a means to support the market.

Weaker demand is set to result in corresponding lower costs, an advantage to oil exporting countries such as Kenya.