The recent fuel price review saw the cost of fuel rise, ending a 3 month price ease. The retail price of diesel in Nairobi crossed the KES 100 mark to retail at KES 101.07 from KES 97.08 while super petrol and kerosene now retail at KES 108.95 and KES 79.65 respectively in Nairobi.

This rise has been attributed to rise in international oil prices. The Free On Board (FOB) PRICE OF Murban crude oil lifted in August 2012 was posted at USD 111.65 per barrel, reflecting an increase of 9.73 percent, from USD 101.75 per barrel in July 2012.

The average landed cost of imported Super Petrol increased by 2.76 per cent, from USD 997.52 per tonne in July 2012 to USD 1025.05 per tonne in August 2012. Over the same period the average landed cost of imported Diesel increased by 6.90 percent from USD 933.35 per tonne to USD 997. 78 per tonne, while the average landed cost of imported Kerosene increased by 10.19 percent. From USD 928.33 per tonne in July 2012 to USD 1022.89 per tonne in August 2012.

To some positive news, the mean monthly exchange rate improved marginally by 0.06 percent to KES 84.06 to the dollar in August 2012, compared to KES 84.11 to the dollar in July 2012.

Below is a graph showing the trand of monthly exchange rates and crude prices for the last 12 months.