Super petrol, kerosene and diesel will each gain a two-shilling credit on the consumer side as the Energy Regulatory Commission (ERC) has reviewed the relative cost of the energy products, which came to effect midnight February 14, 2013.
ERC attributes the adjustments to the wavering shilling in exchange potential against the dollar, as well as, the upward push in retail goods, even as Kenya heads for the general elections on March 4 of the year.
Now, Super Petrol will essentially cost Sh113.60 per liter, while diesel will retail at Sh106.20, with kerosene going to Sh85.93, per liter, from the previous Sh11.60, Sh103.99, and Sh83.85, for the three oil products, respectively.
The above prices are set to go for the next one month before another review comes to bear on their aggregate cost margins.
The ERC gauges its standard oil prices on the macroeconomic supply and fiscal factors, including inflation and the cost of crude petroleum form the world market, especially the Gulf. The fiscal indicator has hit hard now that the Kenya shilling vis-à-vis the US Dollar has overtaken the once-high January margin when it peaked at 86 points against each buck, now exchanging a point higher, at 87.
Crude import costs have increased exponentially since the final month of last year, with a company like Murban indicating that their prices for every barrel in the January stocks clocked at $125.05, for each barrel, in comparison with the $110.75 a month earlier, for the same capacity.
Even as Kenya Finds new Deposits
Meanwhile, as the country wallows in the mire of an oil price hike, Tullow Oil PLC, a British prospecting company operating in the Turkana region is wallowing in the swamp of opportunity.
According to a statement from the company, February 13, the Twiga-South 1 well has for the initial time, following a successive quadruple of tests on the mineral crust, over the last two months, seen signs of holding some substantial oil reserves. According to the flow tests that the firm conducted, the block has the ability to churn out 500 barrels on a daily basis, which would amount to a 2850 barrels capacity if the entire well comes into operation.
The inaugural oil find in the Turkana region, the Ngamia 1 well, is still under advanced testing to measure the flow capacity if the oil that the firm discovered for the first time in its prospecting efforts in the basin is indeed feasible.
The South Lokichar block in which the two wells under Tullow’s supervision are situated, form part of eleven prospecting wells essential for evaluating the potential of the basin. Among the eleven, Tullow also seeks to gauge the risk factor of five among them, with the Twiga South-1 announcement showcasing the gains in the first.
Thus, Kenya may be reeling from unsustainable foreign oil price overflows, but it reserves the final buck when its northern on-shore fields prove an economic miracle.