Petrol prices jump by Ksh.7.63 sending cost per litre past Ksh.120

Motorists across the country will fork more than Ksh.120 per litre to fill their vehicle with petrol with the commodity seeing a steep Ksh.7.63 jump in costs.

Diesel and kerosene prices have also surged by Ksh.5.75 and Ksh.5.41 a litre in the latest maximum pump prices review by the Energy and Petroleum Regulatory Authority (EPRA).

The month on month increase in the cost of all three petroleum products is largely attributable to a rise in international prices as oil demand continues to recover from depths of depression last year.

For instance, the landed cost of imported petrol surged by 14.97 per cent in the past month while diesel and kerosene import costs rose by 12.29 and 13.26 per cent respectively.

A litre of petrol will now retail in Nairobi at Ksh.122.81 while diesel and kerosene will retail at Ksh.107.66 and Ksh.97.85 per litre respectively.

The cost of petrol will now sit at more than Ksh.120 per litre across the country with Mombasa which pays the lowest for the commodity parting with Ksh.120.41.

The rise in international fuel prices has been mirrored in crude charts, with Murban- the crude component from which Kenya imports its petroleum products peaking at Ksh.7555.03 ($68.87) last month.

Higher petroleum costs are expected to exert pressure on consumer spending affecting the pricing of other commodities including electricity bills and even food prices.

A near similar rise in fuel costs in February for instance saw inflation close out the month at 10 month high of 5.8 per cent.

While international prices have risen in recent months, the government fuel taxation has come under sharp scrutiny with taxes and levies representing nearly half the total cost.

For instance, out of the Ksh.122.81 representing the new petrol pump price in Nairobi, Ksh.57.33 represents taxes which includes a Ksh.5.40 controversial petroleum development levy which was raised from 40 cents at the end of last year.

The landed cost of petrol stands at Ksh.49.84 while storage & distribution costs and margins to oil marketing companies amount to Ksh.3.25 and Ksh.12.39 per litre respectively.