Kenyan motorists are once again paying high fuel prices as they prepare for the festive season.
This is against a backdrop of the government’s promise to introduce a pricing formula as a result of last year’s scenario that almost spiralled out of hand.
A spot check by the Daily Nation in a number of pump stations in Nairobi revealed that the prices were at a high of Sh87 per litre for petrol and Sh78 a for the same quantity of diesel.
Cost adjustment
According to some industry sources, the increase is as a result of the surge in Murban crude oil on the international market.
This, they noted, had effectively resulted into a price adjustment of Sh3 per litre for the two fuel products.
Last year, the country was plunged into unprecedented fuel shortage around the same time.
Consequently, the government intervened directing the Energy Regulatory Commission to come up with a pricing formula.
However, this is yet to take see light of day as oil marketers continue to have their way in determining prices in what they say must reflect international crude oil costs.
The pricing of unprocessed oil has continued to seesaw throughout the year and on Monday, it stood at $73 per barrel.
According to a consultant with Hydrocarbon Management Robert Shisoka, the prices are set to go up further as crude oil at the Mombasa based refinery was procured at high prices.
“It takes a lead time of seven weeks from when crude oil is bought, ferried to Mombasa, processed, transported inland and transferred to retail outlets,” said Mr Shisoka.
Kenya imports Murban crude oil from Abu Dhabi National Oil Company, which in retrospect fixes prices at the beginning of the coming month based on previous month’s average cost.
Among the stations visited by the Nation were Total and KenolKobil retail outlets along Koinange Street, Nairobi.
The outlets sold petrol at Sh87.9 per litre and diesel for Sh76.90.
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