Pain at the pump as petrol price rises by Ksh.7.58, diesel Ksh.7.94, kerosene by Ksh.12.97

Pain at the pump as petrol price rises by Ksh.7.58, diesel Ksh.7.94, kerosene by Ksh.12.97

Kenyans will face more pain at the pump from Wednesday as petrol prices zoom past the Ksh.130 mark per litre, an all-time high cost for the commodity.

In its latest maximum pump price review, the Energy and Petroleum Regulatory Authority (EPRA) has raised the prices of super petrol by Ksh.7.58 per litre.

This is while the cost of diesel and kerosene shoots by Ksh.7.94 and Ksh.12.97 per litre respectively from midnight on Wednesday.

A litre of petrol in Kenya’s Capital Nairobi will now cost Ksh.134.72 rising from Ksh.127.14.
The cost of diesel meanwhile spikes to Ksh.115.60 from Ksh.107.66 while kerosene will cost Ksh.110.82 from Ksh.97.85.

EPRA has attributed the rising fuel prices higher costs for landed petroleum products with the cost of landed super petrol rising by 0.72 per cent, diesel by 4.81 per cent and kerosene by 0.96 per cent.

The energy sector regulator however masks the true reasons behind the astronomical surge in fuel costs.

A stand-in fund known as the fuel price stabilization fund has seemingly run out of reserves ending relief to Kenyans who had seen fuel prices go unchanged in the last two months.

The fund run partly by the National Treasury has provided respite to consumer by lowering margins paid to suppliers/ oil marketers who are later compensated by the exchequer for the hair cut.

Subsequent to lack of funding for the stop-gap kitty, EPRA has been forced to reinstate all of the margins ending with the significant jump in fuel prices.

For instance margins to the suppliers of petrol have shot to Ksh.12.39 (the norm) from Ksh.5.29, the margins for the supply of diesel have also been reinstated to Ksh.12.36 from Ksh.2.49.

The margins for the supply of kerosene are also back at the usual Ksh.12.36 from Ksh.2.

Since the implementation of the fund on April 14, petrol prices have only risen twice, by Ksh.3.56 in May and 77 cents in June while diesel and kerosene costs have not moved since the March 14 review.

The greater fuel costs are expected to hurt Kenyans not just at the pump but also in their pockets as the cost of living surges with the prices of other basic commodities rising in the aftermath of higher petrol costs.

Inflation already stands at 6.6 per cent as of the end of August and is likely to breach edge closer to the government’s upper target of 7.5 per cent at the end of this month.