Kenyans will feel more pain at the pump and other basic commodities thanks to exorbitant adjustments which set higher pump prices.
The prices of super petrol, diesel and kerosene have increased by Sh7.63 per litre, Sh5.75 per litre and Sh5.41 per litre respectively in the latest pump prices review by the Energy and Petroleum Regulatory Authority (EPRA).
A litre of petrol will now cost Sh122.81 in Nairobi, up from Sh115.18 it has retailed at since February 15. Diesel (Sh107.66 per litre up from Sh101.91 a litre) while poor households using kerosene for cooking and lighting will part with Sh97.85 to take home a litre of the product, up from Sh92.44.
In its monthly review announced on Sunday, EPRA, pegged the rise on increased landed cost of importing the products.
Mandera residents will pay the highest amount to access the petroleum products with a litre of petrol retailing at Sh135.85 from Sh128.22, Sh120.70 from diesel up from Sh114.95 and Sh110.88 for a litre of kerosene, up from Sh105.47.
Mombasa residents enjoy the most favourable prices due to nearness to the port, which saves them from additional transport costs for the products.
A litre of super petrol in Mombasa will cost Sh120.41 up from Sh112.78, diesel Sh105.27 from Sh99.52 while kerosene will retail at Sh95.46 a litre for the next 30 days.
The increase in pump prices is expected to influence the cost of living this month after overall year-on-year inflation rose to a 10-month high of 5.78 per cent in February.
“The charges in this month’s prices are as a consequence of the average landed cost of imported super petrol increasing by 14.97 per cent from $391.24 per cubic metre in January to $449.82 per cubic meter in February 2021,” acting Director-General Daniel Kiptoo said in a statement.
Diesel increased by 12.29 per cent from $377.35 per cubic metre to $423.95 per cubic metre while that of Kerosene increased by 13.26 from $347.19 per cubic metre to $393.23 per cubic metre.
The Free On Board price of Murban crude oil lifted in February was posted at $61.61 per barrel, an increase of 11.47 per cent from $55.27 per barrel in January.
Over the same month, the mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.20 from Sh109.89 in January to Sh109.67 per dollar in February.
“The prices are inclusive of the eight per cent Value Added Tax in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per the Legal Notice No. 194 of 2020,” Kiptoo noted.
The new prices are effective from midnight.
Global oil prices have been on the rise after major producers agreed to cut output in line with their commitments on restraint, supporting a market thrown out of balance by weak demand during the Covid-19 pandemic.
Brent averaged $70 (Sh7, 675.50) a barrel last week and have so far in 2021 increased by about 33 per cent.
Tightening of the market is pegged on declining crude oil inventories in the world’s two largest oil-consuming nations and largest economies, the US and China.