Pain at the pump as petrol, diesel prices rise by Ksh.5

Motorists are set for more pain at the pump as petrol and diesel prices rise by Ksh.5 per litre in the latest round of the pump prices review by the Energy and Petroleum Regulatory Authority (EPRA).

The latest increase comes five months after the last hike in petroleum prices last September as the petrol price stabilization mechanism fails to hold ground this time.

Nevertheless, the government has still partly utilized the stabilization mechanism to hold off further increases in fuel prices after the average cost of imported super petrol rose by 13.34 per cent while diesel imports were up by 11.74 per cent.

A litre of super petrol will now cost Ksh.134.72 in the Capital Nairobi while diesel will cost Ksh.115.60 per litre.

Users of kerosene have been spared from the recent hike with the price of the commodity holding unchanged on the full cover of the price stabilization mechanism leaving a litre of the product in the Capital at Ksh.103.54 despite a 15.9 per cent jump in import costs.

Without the partial use of the subsidy, Kenyans would have paid an average of Ksh.155.11 per litre for petrol, Ksh.143.16 for diesel and Ksh.130.44 for kerosene.

Despite the rising global crude prices, the free on-board price (FOB) of Murban crude fell by 9.4 per cent to $74.36 per barrel or Ksh.8492 last month from $82.03 in January.

A combination of unmatched demand by oil producing and exporting countries and supply constraints from the fall out of Russia’s invasion of Ukraine have this month pushed crude prices beyond the $100/barrel (Ksh.11420) ceiling setting the stage for further oil prices hikes in coming months

The rise in fuel costs is expected to heighten the cost of living, reversing the latest disinflation trend which saw consumer prices ease in both January and February.

For instance, February inflation fell to a 17-month low 5.3 per cent last month on unchanged energy costs which offset a steady rise in food costs during the month.