More pain at pumps as price of fuel rises
Consumers will continue to dig deeper into their pockets to stay on the roads, light up their homes as well as prepare their meals.
This is after the Energy Regulatory Commission (ERC) on Tuesday increased the prices of diesel and kerosene for the second consecutive month, killing the hopes of Kenyans who had expected to continue enjoying the effects of lower crude prices in the global markets.
Diesel now costs Sh1.28 more per litre while kerosene will be priced at Sh1.46 higher, compared to last month.
Some motorists, however, got a slight reprieve after the price of super petrol fell by a negligible 11 cents per litre.
The regulator cited a rise in the purchasing and shipping costs of the products for the increase.
ERC said that it took into consideration a 0.72 per cent depreciation of the local currency against the dollar to Sh92.07 in March, while arriving at the new pump prices that will be effective until mid next month.
“The average landed cost of imported super petrol decreased by 1.46 per cent. Over the same period, the average landed cost of imported diesel and kerosene increased by 1.91 and 3.59 per cent respectively. Over the same period, the mean monthly US dollar to Kenya shilling exchange rate depreciated from Sh91.41 in February to Sh92.07 in March,” ERC said in a statement.
Last month, ERC increased the prices of all the three fuel products, leaving consumers of super petrol the most affected with a rise of Sh4.75 per litre.
The move sparked protests by motorists, with the World Bank criticising the formula relied upon by the regulator to set fuel prices, saying that it denies consumers the chance to enjoy the full benefits of low global oil prices.
ERC has defended itself, saying that the World Bank report failed to take into account a fixed component of the retail pump price totalling to Sh45 per litre, which includes taxes, that does not change irrespective of the changes in oil prices in the international market.