Kenya: Fuel Prices Soar as Political Crisis Persists in North Africa
By staff writer
NAIROBI—Following the political unrest in North Africa, fuel prices have gone up in Kenya. In the capital Nairobi, a litre of Super Petrol will now retail at KES 98.08 ( $1.225) for the next 30 days up from KES 95.60 ($1.195). The worst hit region is the western city of Kisumu, where the motorist will pay KES 100.28 ($1.25) per litre. At the port city of Mombasa , a litre of the same will sell at KES 94.93 ($1.186) , Nakuru KES 99 ( $1.237) and at KES 100 ($1.25) in Eldoret.
According to Kenya's Energy Regulatory Commission (ERC) Director General Kaburu Mwirichia, among the issues that have impacted on the international oil prices include the political instability being experienced in North Africa and as a result, pricing of the free on board price for Murban crude oil lifted in January 2011 went up by four per cent.
"During the month of January 2011, the international prices of crude oil and refined petroleum products continued on an upward trend, which started in July 2010," said Mwirichia.
The latest increase also accounts for an overall increase of between KES 0.94 and KES 3 per litre for the products under review from the prices set by the Commission last month after taking into account all prudently incurred cost inputs by oil marketers.
The Commission is under the regulations mandated to review pump prices for petroleum products on a monthly basis based on a formula that incorporates all costs and factors affecting the oil industry in the country.
Meanwhile, the Consumers Federation of Kenya - COFEK has expressed outrage at the rising prices even after the government moved in to regulate the industry.
The lobby group said the increase by the government was unreasonable considering that state-run National Oil Corporation of Kenya has been offered the 30 per cent monthly oil supplies quota to cushion consumers.
The government instituted fuel caps in December after Kenyans complained retailers were exploiting them. The limits are based on location of sale, with Kisumu on the shores of Lake Victoria attracting the highest charges due to its distance from the refinery in Mombasa.
Maximum prices are determined every 15th day of the month and are in force until the 14th day of the following month.
Fuel prices have a large bearing on Kenya's rate of inflation as most of the country's 39 million people rely on kerosene for lighting.
Most of its food is also moved around the country by road and in times of drought, electricity producers turn to diesel for thermal generation.
Brent crude, the benchmark in Europe, Africa and the Middle East, for April was up US 91 cents to $101.85 at 1113