Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Fuel price raised

14 November 2011, 17:49

Nairobi - Kenya's energy regulator raised the price of petrol, diesel and kerosene on Monday in response to high international crude oil prices and a weakening local currency, in a move that is likely to dampen hopes inflation in east Africa's biggest economy might have peaked.

Kenya's inflation rate hit 18.91 percent in October on rising food, electricity and fuel prices. The authorities' failure earlier in the year to control runaway prices depressed confidence in Kenya and hurt the Kenyan shilling, which hit a record low of 107 to the dollar last month and is still down by 13.5 percent to the dollar this year.

Kenya's central bank recently raised interest rates sharply to tame inflation and support the shilling.

The Energy Regulatory Commission said on Monday it would raise the price of super petrol in the capital Nairobi by 3.63 shillings to 124.13 shillings, while diesel prices would increase by 3.36 shillings to 114.30 shillings per litre. The price of kerosene would go up by 4.92 shillings to 94.87 shillings a litre. The changes would be nationwide and take effect on Tuesday.

"The key drivers of this trend have been high international prices of crude oil and refined products and a weakening shilling against the dollar," Kaburu Mwirichia, ERC director general, told a news conference.

Mwirichia said that rising interest rates locally had also added pressure on oil companies as they had to pay more on any borrowings they made to finance their oil purchases.

The base lending rates levied by commercial banks have been rising steadily in the past month, after the central bank's Monetary Policy Committee raised the benchmark lending rate to 16.50 percent from 11 percent last month.

"The cost of financing has increased substantially and petroleum marketers borrow to buy the fuel so we have factored 62 cents per litre as part of operating costs," Mwirichia said.

Kenya's economy is highly dependent on diesel for transport, power production and agriculture while kerosene is used in the homes of many of the country's population.

Join in the conversation on News24 Kenya’s Facebook page

Get the latest news by following us on Twitter

- Reuters

Tags economy

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
S Mbinya
How to get rid of cellulite at ho...

Proper diets and a healthy lifestyle are among the most effective natural remedies for cellulite. Read more...

Submitted by
George Vodongo
Peter Kenneth is not a good leade...

A local activist has slammed the former Presidential candidate Peter Kenneth for only appearing during elections but going underground when the country has problems.  Read more...

Submitted by
Ben Wangui
Javelin champion Julius Yego invo...

He is undergoing treatment at the Medihill hospital in Eldoret. Read more...

Submitted by
Wilson Ochieng
DP Ruto accuses Raila of selling ...

DP Wiliam Ruto has castigated Raila Odinga for seeking western support to fund his 2017 election bid. Read more...

Submitted by
William Korir
Peter Kenneth announces Uhuru 201...

Peter Kenneth has announced that he will support President Uhuru Kenyatta in the 2017 elections. Read more...

Submitted by
Wilon Ochieng
Labour Party to dump both Jubilee...

The Labour Party of Kenya is likely to avoid supportoing both the CORD and Jubilee factions during the 2017 General Elections. Read more...