The maximum pump prices for a litre of Super Petrol has increased by Kes 0.77 per litre while that of a litre of Diesel and Kerosene remains unchanged.
According to the latest fuel prices released by the Energy and Petroleum Regulatory Authority(EPRA), the pain at the pump has been kept minimal despite a steady increase in the price of imported Murban crude, which lifted in May 2021 was posted at $ 67.71 per barrel, increasing 5.90% from$ 63.94 per barrel in April 2021.
EPRA figures indicate that the average landed cost of imported Super Petrol increased by 1.52%, from $ 488.69 per cubic metre in April 2021 to $ 496.10 per cubic metre in May 2021.
The one-sided adjustment to petroleum costs by EPRA is largely attributable to the operation of a price stabilization scheme by the Ministry of Petroleum to cushion Kenyans from greater fuel costs.
However, there no regulations to guide the use of funds collected in the form of levies from consumers, thus making the operation of the price stabilization scheme is technically illegal.
Nevertheless, the Ministry has defended the operation of the fund without the pre-requisite provisions arguing the overall good for Kenyans who continue to lament over runway fuel costs in the country.
Diesel increased by 5.98% from $ 439.60 per cubic metre to $ 461.95 per cubic metre, while kerosene increased by 4.41%, from $ 430.40 per cubic metre $ 449.37 per metre cubic. During this period under review, the Mean Monthly US $ to Kenya Shilling Exchange Rate appreciated by 0.21% from Kes 107.84 per US$ in April to Kes 107.61 per $ in May 2021.
EPRA figures indicate that the price of imported crude oil has been steadily rising from $ 36.34 per barrel in July 2020 to $49.57 in December 2020 before hitting a high of $67.71 in May 2021. Maximum fuel prices in Mombasa for a litre of Super Petrol will now retail at Kes 124.72 per litre, Kes 127. 17 in Nairobi, Kes 126.75 in Nakuru and Kes 127.67 in Eldoret and Kisumu, respectively.
The new prices come into effect midnight of 15th June 2021 to 14th July 2021.