Kerosene has recorded the highest jump in price tha6t will be announced today following fresh importation of product that has not been on fuel orders since April.
One litre of kerosene will be sold Sh18.03 more per litre starting today to retail at Sh83.48 in Nairobi up from Sh65.45 per litre in July. July import, which comes after crude prices have recovered to an average of $43 per barrel, will result to 28 per cent increase in prices of product which is largely used by poor households to cook and in manufacture of paint.
The rise will hit poor households hard, with higher number having slid to use of kerosene and reduced reliance on cooking gas, according to data from Energy and Petroleum Regulatory Authority. The increased use of kerosene, whose prices touched a three year low of Ksh62 per litre even as import came for three months has caused a shortage in various parts of the world. This is according to petroleum dealers.
Cooking gas consumption data that has covered the period when Kenya began implementing containment measures to flatten covid-19, shows that volume dropped while use of kerosene rose. Hard economic times as a result of health restrictions may have pushed households to cheaper but dirty cooking option. The six month data shows that consumers bought 23,327 tonnes of cooking gas in June compared to May which the figure was 30,860 tonnes of commodity.
The drop by 24 per cent coincides with double rise in kerosene use in June to 29.4 million litres from 15.4 million litres in May.
“July/August cycle shows that no kerosene was discharged at the port of Mombasa. The prevailing kerosene price has been maintained but adjusted for under-recovery of Value Added Tax by oil marketing companies that occurred in the previous pricing cycle,”EPRA wrote in the monthly pump prices report released on July.
The rise in price is more than six times compared to Sh2.98 per litre added in the pricing cycle.Follow us in social media: