Monday, February 18, 2008

As petrol heads to Sh100, can Kenyan pumps handle the figures?

Fuel prices in some parts of Nairobi were yesterday Sh3.00 shy of touching the Sh100 mark as motorists paid an average Sh97 to buy a litre at gas stations within the city’s central business district. Diesel traded at an average Sh85. In July consumers paid an average Sh79 for a litre of petrol in Nairobi. This means that Sh1,000 spent at a pump station fetched 12.6 litres but the same amount of money will buy 10 when the new prices set in. The recent surge in international crude prices has been stoked by the effects of a slowing US economy against an escalating row between OPEC member Venezuela and oil major Exxon Mobil.

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