New fuel prices deal blow to poor families

The cost of kerosene has gone up by Sh3.36 a litre, dealing a huge blow to millions of homes that rely on the fuel for cooking and lighting.

Also hit by the latest fuel pump pricing guide announced Sunday are motorists who have to pay Sh2.13 and 2.39 more for super petrol and diesel respectively.

This is the fifth month in a row that the Energy Regulatory Commission has raised the maximum pump prices in the country, putting a strain in the pockets of Kenyans, who grappling with the high cost of living.

The commission yesterday attributed the high prices to an increase in landed costs — the total price of a product once it has arrived at a buyer’s door, including the original price, transportation fees, inland and ocean levies customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees.

The commission’s director General Pavel Oimeke said the average landed cost of imported Super petrol increased by 3.99 per cent from Sh65,530 per tonne to Sh68,148 between November and December last year.

DIESEL INCREASED

He explained that during the same period, the landed cost of diesel also increased by 4.63 per cent from Sh55, 994 per tonne to Sh58, 588 while that of Kerosine also went up by 6.36 per cent from Sh59, 703 per tonne to Sh63, 500.

 He further explained that over the same period, the mean monthly US dollar to the shilling exchange rate appreciated by 0.30 per cent, from Sh103.43 to Sh103.12.

The upward adjustment in pricing will see kerosene, which is largely used by the urban poor and rural households, retail at Sh72.01 per litre in Mombasa, Sh74.78 in Nairobi, Sh75.62 in Nakuru, Sh76.69 in Eldoret and Kisumu, Sh78. 77 in Isebania and Sh88.59 in Mandera for the next one month.

SUPER PETROL

Super petrol, will be cheapest in Mombasa at Sh103.01 per litre.  In Nairobi, it will be sold at Sh106.30, Sh114.55 in Wajir, Sh120 in Mandera, Sh106 in Nakuru and 108.17 and 108.24 respectively in Eldoret and Kisumu.

For diesel, retailers will sell the commodity at Sh91.55 per litre in Mombasa, Sh94.82 in Nairobi, Sh103 in Wajir, Sh108.63 in Mandera, Sh95.74 in Nakuru, Sh96.92 in Eldoret and 96.99 in Kisumu.

Petroleum prices currently vary across Kenya due to transport costs from Mombasa port where imported consignments land .

The commission said the purpose of fuel pricing regulations is to cap the pump prices of the products so that the importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers.