Why ERC has increased Petroleum prices.


By Abel Muhatia @abelmuhatia

The Energy regulatory commission (ERC) has raised Petroleum pump prices. 

This is after a 4 weeks relief to motorists and consumers of petroleum products.

According to ERC, the average landed cost of imported diesel increased by 2.17% between January to February 2015 leading to an increase in the prices of refined petroleum products in international markets.

 Reflecting the increase to the products, the maximum allowed price of diesel now stands at an increase of Sh0.68 per litre that of kerosene increases by Sh3.35 per litre while that of super petrol increases by Sh4.75 per litre  Landed cost of imported refined products, taxes and levies, supplier margins and distribution cost are among the cost components included in the current review of the new prices.

They all register an increase of between 5 to 50%.

However,the Consumer Federation of Kenya (COFEK) has termed the increment as unjustified.It has gone further to state that ERC has remained a conduit for profiters to make money at the expense of consumers.

Through their secretary general Stephen Mutoro,COFEK has called on the national assembly to consider their petition on withdrawing ERC powers on fuel pricing and leave the same to the market

“The so called Open Tender System (OTS) need to be done away with and open up competition for all Oil Marketing Companies (OMSs) to compete on importation” said Mutoro

At the same time,COFEK demanded that ERC responds to claims by world bank reports indicating kenyas fuel is overpriced by Sh.15 per litre

The new prices will be in force from 15th of March.  


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