Kenya: Brace for the worst, experts warn as oil prices soar

Kenyans have been warned to brace for further increases in oil prices — and the rise in the cost of living that goes with it.

Many household budgets have been stretched to breaking point by increases in fuel prices which have sparked similar rise in the cost of food, transport and other essential goods.
From motorists in Mombasa to farmers in Eldoret and fishermen in Kisumu, Kenyans will have to tighten their belts as experts predict that oil prices will continue to escalate. Global oil prices surged to a high of Sh8,370 ($135) a barrel for the first time this week. The trend is expected to persist into the foreseeable future and the price is likely to hit Sh9,300 ($150) per barrel in a matter of months.

Locally, the price of petrol has reached Sh102 per litre while that of diesel stands at Sh91. The cost of kerosene, which is popular for cooking and lighting in many low income homes, has risen to Sh80 per litre from Sh65 last year.

“For the immediate future, fuel prices will continue to escalate,” Kenya Shell managing director Patrick Obath warned in an interview with Saturday Nation.

Many individuals and companies are already feeling the pinch. Some motorists for example are now using their vehicles less and many households are switching from kerosene to charcoal for cooking.

Last week, the national carrier, Kenya Airways, laid off several senior managers and consolidated some of its international routes to cut costs in the wake of rising jet fuel prices.

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