Kenyan motorists and households to feel the pinch after prices of diesel and kerosene shoots up
The Energy Regulatory Commission attributes this to mixed landed cost of refined products.
This follows fuel review by the Energy Regulatory Commission that introduced 16 percent Value Added Tax (VAT) on petroleum products expected to take effect midnight.
Motorists who use diesel will pay 70 cents more for each liter but those using super petrol will get some reprieve as a liter will cost 46 cents less.
The Energy Regulatory Commission attributes this to mixed landed cost of refined products that saw super petrol reduce 1.26% from 688 dollars and 76 cents to 680 dollar and 5 cents per ton.
The landed cost of diesel rose 4.22% to 618 dollars and 49 cents while kerosene cost 668 dollars per ton in February, representing a 3.45% increase.
Motorists in Nairobi, will fork out KES 107.46 for a liter of super petrol, KES 97.86 for diesel and kerosene KES 77.45 while their counterparts in Mombasa will buy fuel at the cheapest rate with a liter of super petrol costing KES 104.18, diesel at KES 94.59 and kerosene retailing at KES 74.69.
The rise in diesel prices is likely to push up prices of daily household utilities since majority of Kenyan goods are transport via road network and businesses may pass the burden to consumers.
The Central Organization of Trade Unions Kenya COTU (K) has condemned the Cabinet Secretary Treasury Henry Rotich for the hike in petroleum prices, terming it unpopular.
In a statement Thursday, COTU Secretary General Francis Atwoli says this will drain and cripple Kenyans and that the CS should come up with ways of raising revenue other introducing unreasonable taxes especially on petroleum product that are already extremely high for Kenyans.
“The CS Treasury along with Energy Regulatory Commission (ERC) has ignored our appeals and is now is planning to increase fuel cost by Kshs. 17 per litre. This is a plan to bring down our economy and execute poor Kenyans since they will be forced pay more for transport, food, and housing and dig deep into their pockets to pay for extremely high prices for all goods and services.” He said.
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