The latest fuel price review has seen the price of Super Petrol increase by KES 6.31 to retail at KES 115.26, Diesel increase by KES 5.04 to retail at KES 106.11 and Kerosene increase by KES 6.36 to retail at KES 86.01 per liter in Nairobi, a price rise that has resulted in sharp criticism from section the public channeled towards the energy regulator, ERC, but which the regulator attributes to rise in international oil markets and weakening of the shilling.
As posted by Abu Dhabi National Oil Company and the Energy Regulatory Commission (ERC) the Free On Board (FOB) price of Murban crude oil lifted in September 2012 was posted at USD 115.54 per barrel, reflecting 3.48 percent rise from USD 111.65 per barrel in August 2012.
As indicated in the latest ERC petroleum prices press release, the average landed cost of imported super petrol increased by 12.05 percent to retail at USD 1148.54 per tonne in September 2012 from USD 1025.05 per tonne in August 2012. Over the same period the average landed cost of imported Diesel increased by 5.21 percent to retail at USD 1049.80 per tonne while that of kerosene increased by 8.69 percent to retail at USD 1111.24 per tonne.
As posted in the above press release and from statistics from Central Bank of Kenya (CBK), the mean exchange rate deteriorated marginally in September 2012. As indicated in the press release, the shilling depreciated by 0.76 percent resulting in an exchange rate of KES 84.70 to the US Dollar in September 2012 compared to KES 84.06 per US Dollar in August 2012.
Taking into account the above factors, ERC states that the overall result is a rise in fuel prices. ERC further noted that there have been an inconsistent trend in the price of refined petroleum products in the international market over the past one month, this making it difficult to predict the effect on pump prices in subsequent price reviews.