Another round of high fuel prices!

Posted on January 5, 2011


Barely a month after the Kenyan government introduced a retail price ceiling for petroleum products, new reviews are set to beat the aim of the action.

The Energy Regulatory Commission has already indicated that new reviews expected on January 15 might be higher than current pricing.

The news reported by the Radio Africa Group (Kiss TV, Classic FM and Kiss 100) attributes the adjustments to high crude oil prices in the international market. The same speculation is also carried on the Business Daily front-page news.

The price of crude has been oscillating at a 27-month highest price of between $90 and $93 a barrel. It is this increase that the regulator is expected to benchmark its calculations for the pricing for the next 30 days.

With these fears confirmed it would be time motorists dug deeper into their pockets to get moving from one destination to another. Public Service Vehicle (PSV) operators will follow suit and adjust fares payable in the various routes. Additionally the Fuel Cost Adjustment on electricity bill is expected to increase.

The sum total of this will be a difficult period for consumers in Kenya as each and every sector is largely dependent on petroleum products to drive their services.  That said at the pump stations, Kenyans outside the capital city of Nairobi would bear the most brunt.

Motorcycle operators at a rural town in Kenya line up at a pump station to fuel. The next set of price review is expected to push the prices further in Western Kenya

On Tuesday, the Daily Nation reported that pump prices in towns outside Nairobi to the western part of the country were already feeling the pinch of the new price caps-. With the new adjustments, it is highly likely that consumers in towns such as Kisumu and Eldoret and their surroundings will pay as much as Sh100 per litre of petrol.
The ministry of Energy’s December 15 price reviews put the recommended retail price in Nairobi- Sh94.03 for a litre of petrol. In Kisumu, Nakuru and Eldoret Sh96.25, Sh95.10, and Sh96.19 respectively for the same. In Mombasa consumers pay Sh91.08 for a litre of petrol.

Has the celebration on the government price caps for oil marketers been short lived?

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