Petrol price up as import costs rise
Petrol prices have increased for the first time since June with the country’s energy regulator citing the rising cost of petroleum imports.
The Energy Regulatory Commission (ERC), which sets maximum retail prices for petrol, diesel and kerosene on the 15th of every month, said the costs of importing a tonne of petrol had risen 7.48 per cent.
But the regulator delayed payment of Sh945 million compensation to the oil markets that
was expected to start last midnight, arguing it would have hurt homes and businesses in an environment of pricey oil.
Petrol, mostly consumed by private cars, will cost Nairobi motorists Sh98.30 per litre
from Sh96.08, while diesel is up by a shilling to Sh86.86 in the capital.
Energy and transport costs have a significant weighting in the basket of goods and services used to measure inflation, which
rose to 8.04 per cent last month from 7.47 per cent in July.
The rate rose above the government’s preferred band of 2.5 to 7.5 per cent earlier in the year after a regional drought caused prices to surge. The ERC attributed the costly fuel to higher prices in the global market.
Petrol users were, however, spared a further Sh0.69 increase per litre that the ERC intended to include in the latest review and staggered over six months compensate oil marketers who incurred costs earlier that were not passed on to motorists.
“The compensation will be paid when prices start decreasing in order to have less impact on consumer prices,” the ERC acting director-general Pavel Oimeke said.
REFILL At the pump: City motorists will pay Sh98 for a litre of petrol. --FILE