Fuel pump prices edge up for the first time in 14 months

Government hikes fuel prices for the first time in over a year. [Standard, File]

For the first time in more than a year, the government has hiked the retail cost of fuel.

This is likely to see Kenyans now dig deeper into their pockets for transportation but also essential products with industries likely to adjust costs to reflect higher pump prices.

The Energy and Petroleum Regulatory Authority (Epra) Tuesday evening increased the cost of super petrol marginally by 29 cents.

Diesel, which is used by different industries including transport, manufacturing and agriculture to power processes, on the other hand, went up by Sh2 per litre, while kerosene increased by Sh3.

Following the adjustments, super petrol will for the next month retail at Sh176.58 per litre in Nairobi. Diesel will go up to Sh167.06, while kerosene will now cost Sh151.39 per litre in the capital over the next month. The hike is the first since November 2023, when prices started coming down on a combination of factors, including declining oil prices globally and the strengthening of the shilling against major world currencies.

"In the period under review, the maximum allowed petroleum pump prices for super petrol, diesel and kerosene increase by Sh0.29 per litre, Sh2 per litre and Sh3 per litre respectively," said Epra in a statement. The hike was despite product costs having remained largely the same as the case in December.

The landed cost, which is the price of fuel on arrival and before costs such as taxes, inland transport and marketers margins are factored in, stood at Sh84 per litre of diesel and Sh79.27 per litre of diesel this month compared to Sh83.48 (diesel) and Sh79.39 (super petrol).

Murban crude oil traded at an average of $74.87 (Sh9.660) per barrel in December, a slight increase from $73.41 (Sh9,470) per barrel in November. The shilling remained stable against major world currencies, trading at Sh129.58 to the US dollar.

"The average landed cost of imported super petrol decreased 0.14 per cent (between November and December)... diesel increased by 0.06 per cent... while kerosene decreased by 1.62 per cent," said Epra, noting the marginal changes in the landed cost of petroleum products.

Up until this month, pump prices had consistently been on the decline, dropping by Sh41 per litre of super petrol from a high of Sh217.64 per litre, a historical high seen in November 2023 to Sh176.29 last December.