Fuel prices up due to shortage fears

Petroleum marketing companies have increased fuel prices in the North Rift following shortage of the commodity in some parts of the region.

Matatu operators in most parts of the region have also increased their fares to cash in on scores of travellers returning to towns after the Christmas and New Year festivities.

The major oil dealers have increased fuel prices by between Sh4 and Sh7 per litre due to what they attributed to impending shortage of the commodity caused by increased crude oil prices in international market.

Matatus plying the Eldoret-Kapsabet route have increased fare from Sh150 to Sh200 while those operating on Eldoret-Iten road have increased fare from Sh100 to Sh140.

A spot check by the Nation indicated that matatu operators on other routes linking Eldoret town have also increased fares.

Passenger service vehicle operators in the country have threatened to go on strike from Monday to protest against alleged police harassment and extortion.

Multi-national oil companies fear there could be a looming shortage of the commodity in the market.

However, some of the independent oil dealers have maintained their prices due to low demand for petroleum products especially diesel in the region.

A spot check by the Nation indicated that Caltex dispensing unit in Eldoret town was selling a litre of unleaded premium at Sh83.90, regular at Sh84.40 and diesel at Sh73.90 a litre.

But some of the independent dealers in the town were selling a litre of regular at Sh81.90 and diesel at Sh 71.90 per litre.

The fuel prices had drastically reduced early this year with diesel going at less than Sh67 a litre.

“The increased prices have been caused by decline in supply caused by stock taking by some of the oil marketing companies as they close the year,” said Mr Hezekiah Kosgei, an independent oil dealer in Eldoret.

He however expressed fears that the fuel prices were likely to increase further due to increased demand during the festive season.

The cost of crude oil has increased to $73 in the international market.

But some motorists claimed most petroleum marketing companies in the region were taking advantage of festive season and increasing prices to exploit them.

“It amounts to exploitation for the dealers to charge high fuel prices due to lack of price controls,” said Mr John Too, a matatu operator from Iten.

The motorists petitioned the government to implement price control to contain likelihood of increased cost of fuel by some marketing companies.

The government last year promised to implement fuel price controls but this has not happened.