Kenya raises diesel, kerosene prices

Kenyans are bracing for higher inflation after the Energy Regulatory Commission (ERC) on Wednesday increased diesel and kerosene prices in its December review.

The regulator raised the cost of the two fuels by up to 0.05 U.S. dollars per litre, citing higher cost of imported product.

Diesel prices increased the most, rising by the 0.05 dollars. Similarly, the cost of kerosene, which is commonly used by Kenyans in cooking, went up by 0.01 dollars. The cost of super petrol, however, went down marginally to stand at 0.97 per litre.

Kenya is a net importer of fuel products, thus, a change in global oil prices affects local prices, though the East African nation is currently working on producing its own oil.

Kenyans consume an average of 130 million litres of super petrol every month while diesel consumption stands at 200 million dollars, therefore, any change in prices normally has a ripple effect in the economy. Consumption of kerosene, which is used by millions of citizens for lighting and cooking, is higher.

The immediate effect, according to analysts, is a rise in inflation, which has been on a growing trend, swelling to 6.68 percent in November from 6.5 percent in the previous month.

The current inflation, which according to the Kenya National Bureau of Statistics is the highest rate since February, was mainly pushed up by rising cost of fuel and food. Endit