Fuel prices increase

Motorists will be digging deeper into their pockets as fuel prices have risen for January 2017.

Diesel and Petrol have risen by more than 16 toea while Petrol and kerosene has increase by 15 toea.

The increase follows a one-month slump in December 2016 after three consecutive price increases.

As of January 08th, Diesel will be going for 255.22tpl or K2.60, which is an increase of 16.38t from 238.84tpl in December.

A contributing factor to the increase in diesel is the excise tariff imposed on it through Government legislation outlined in the 2017 Budget. Excise tariffs for petrol and kerosene remain the same.

Petrol buys at 316.41 toea per litre (tpl) or K3.16. This is an in increase of 16.63t from 299.78tpl.

Kerosene increases by 15.65t from 228.49tpl (K2.29) to 244.15tpl (K2.40) in January 2017.

The prices have been calculated based on the Import Parity Prices (IPP) for the month of December, which have increased due to the rise in crude oil prices during November 2016.

Crude oil prices have increased due to the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC countries, including Russia, signing an agreement to cut production.

The increases are also due to domestic sea and road freight rates for the first quarter of 2017, the new wholesale and retail margins, excise duty and GST.

Inspections of fuel stations will begin on January 09th (Monday) and all fuel retailers are urged to comply.

Loop file photo

Cedric Patjole