The cost of fuel has gone up by an everage of Ksh4, setting the momentum towards Ksh100 mark when the Budget proposal that raises road maintenance levy by Ksh3 is factored in. The Energy Regulatory Commission’s (ERC) latest monthly review has increased the price of petrol by Ksh4.39 per litre and diesel by Ksh3.97.
Super petrol will retail at Ksh97.28 up from Ksh92.89 in Nairobi, while diesel will cost Ks83.31 up from Ksh79.34 per litre. Kerosene, mostly used by poor households for cooking and lighting, will retail Ksh2.54 more at Ksh61.78 per litre.
The ERC attributed the increases to higher costs of imported petroleum whose prices are rebounding and a weaker shilling to the dollar.
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“The free on board (FOB) price of Murban crude oil lifted in May was posted at $65.75 per barrel, an increase of 8.59 per cent from $60.55 per barrel in April,” the ERC said in a statement. “Over the same period, the mean monthly US dollar to the shilling exchange rate depreciated by 3.1 per cent from Sh93.95 per dollar in April to Sh96.86 in May.”
The energy regulator last month raised petrol prices by Ksh3.54 per litre, diesel by Ksh1.86 and kerosene by Ksh2.03. Petroleum products play a central role in the economy because any price movement is transmitted to nearly all sectors of the economy, including transport, manufacturing and agriculture.
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