Diesel prices rise by Ksh.4.57 in latest fuel costs review
Users of diesel are expected to see the sharpest increase in costs at the pump effective Friday, January 15 with the price of the commodity going up by Ksh.4.57.
All three fuel products have marked an increase in pricing in the latest maximum price review by the Energy and Petroleum Regulatory Authority (EPRA).
Kerosene prices are set to rise by Ksh.3.56 per litre while super petrol has only seen a marginal lift in costs at just 17 cents.
The pricing changes are attributable to the continued recovery of fuel costs in the international markets in recent months.
The average landed cost of diesel for instance increased by 13.1 per cent between November and December ahead of kerosene at 9.3 per cent and super petrol at 1.5 per cent.
A litre of diesel in the capital Nairobi is now expected cost Ksh.96.40 while kerosene will cost Ksh.87.12. Meanwhile, the price of super petrol will settle at Ksh.106.99.
The overall rise in fuel costs is expected to exert pressure on consumer spending ability by lifting the rate of inflation in January.
Inflation in December was already at its highest in seven months at 5.6 per cent with food costs exerting the highest pressure on consumer prices.
International fuel prices are nevertheless expected to cooldown as the COVID-19 pandemic re-emerges as an oil-demand dampener as economies re-shut to contain recent spikes in infections.
The cost of Murban from which Kenya derives its fuel imports has for instance remained below Ksh.6,600 ($60) a barrel keep fuel-led inflation in check.
Lower fuel costs which represent about one fifth of all Kenyan imports have served to cut the overall import bill helping manage the country’s current account deficit (CAD).