Kenyans are set to pay more at the pump beginning midnight today as the Energy Regulatory Commission has reviewed fuel prices upwards for the month of September-October. The regulator has announced that effective midnight 14th of September, super petrol will go up by KES2.47 to retail KES108.95,  Diesel goes up KES3.99 to sell at KES101.07 in Nairobi. Kerosene has gone up by KES5.68 to retail at KES 79.65.

This increase breaks a three month consecutive drop in fuel prices. In August-September, Super petrol was retailing at KES 106.48 per liter in Nairobi while diesel and kerosene retailed at KES 97.09 and KES 73.97 per liter respectively. Sources from the petroleum sector attributed the price drop to large stocks of petroleum products that had been bought at lower prices in addition to a stabilizing Shilling.

For price reviews effective tonight, ERC added a cost of credit surcharge to its fuel pricing formula in order to cater for higher financing costs faced by oil marketers. The surcharge introduced in this month’s retail price review for kerosene, diesel and petrol is one of the reasons fuel prices have gone up by the margins above. Recent trends in the international oil market have also shown a steady rise in the price of crude oil. Murban crude oil prices have been on a steady rise since June 2012. In August they increased by 9.73% to $111.65 per barrel from $101.75 in July

Oil marketers had complained to the regulator over the previous formula stating that it ignored other actual costs in the delivery of oil products. The new charge brings the overall margin enjoyed by fuel marketers to KES 10 per litre while cover for financing rises to KES 1.00.