BusinessPeople Daily

Hard times ahead for consumers

Steve Umidha @PeopleDailyKe

Kenyans using kerosene and diesel will have to dig deeper  into their pockets in the next one month. This is after the Energy Regulatory Commission (ERC) increased the prices of the commodity in the latest monthly fuel review. Households that use diesel and kerosene will pay Sh4.96 and Sh5.88 per litre respectively in the latest appraisal.

However, the regulator offered a marginal reprieve to consumers of super petrol, slightly increasing the retail price by Sh1.64 a litre.

ERC director general Pavel Oimeke (pictured) attributed this month’s price changes on average landed cost of imported Super Petrol which rose by 2.82 per cent from US$ 680.83 per tonne in April to US$ 700.01 per tonne last month.

Landing prices of diesel also rose by 8.99 per cent from US$ 632.72 per tonne to US$ 689.62 per tonne as well as that of kerosene which increased by 9.05 per cent from US$ 683.67 per tonne to US$ 745.54 per tonne.

Following the latest review, a litre of super petrol will retail at Sh108.81 in Nairobi, while diesel and kerosene will retail at Sh103.60 and Sh84.10 respectively. In Mombasa, the super petrol will retail at Sh105.51 while those of diesel and kerosene will retail at Sh100.31 and Sh81.31 respectively.

The sharp increases coincides with government plans to phase out kerosene from the market in favour of clean fuels, use of solar for lighting and Liquefied Petroleum Gas (LPG) for cooking.

The move is further aimed at curbing adulteration of fuel. In 2010, the government  stopped taxing kerosene to cushion poor households from high cost of living – a move that enticed unscrupulous petrol dealers in the market owing to no-tax policy on illuminating kerosene.

“The purpose of the fuel pricing regulations is to cap the pump prices of the products which are already in the country, so that the importation and other prudently incurred costs are recovered, while ensuring reasonable prices to consumers,” said Oimeke.

 

 

 

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