Petrol prices jump by Ksh.8, diesel by Ksh.5

Petrol users will part with more for fuel with the commodity seeing the greatest jump in costs at Ksh.8.19 in the latest review of maximum pump prices.

All three petroleum commodities have registered increments with diesel and kerosene prices soaring by Ksh.5.51 and Ksh.5.32.

According to the Energy and Petroleum Regulatory Authority (EPRA), the changes in prices are a consequence of a rise in the landed cost of petroleum imports in the last one month.

The regulator says the cost of landed petrol has gone up by 20.9 per cent while diesel and kerosene import costs have risen by 13.6 and 14.6 per cent respectively.

A litre of petrol in the Capital Nairobi is now expected to cost Ksh.115.18 while diesel and kerosene will retail at Ksh.101.91 and Ksh.92.44 respectively.

International crude oil prices have been on the rise following a resumption in demand for the commodity after the re-opening of the bulk of world economies following the initial pandemic hit.

An analysis in the trend of Murban crude from which Kenya derives its oil imports shows a more than 10 per cent surge in costs between December and January this year.

Future reviews could see the cost of fuel rise further with the international prices peaking in February.

For instance Murban was quoted at Ksh.6663.08 ($60.85) on Thursday this week in contrast to Ksh.6044.40 ($55.20) at the start of this month.

The increase in fuel cost is expected to exert more pressure on consumer spending with January inflation having peaked at 5.69 per cent, the highest rate since April last year.

Besides rising energy costs, consumer purchasing power has been dented by higher food costs.

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