Petrol users in the Coastal town of Mombasa could soon dig deep into their pockets while acquiring the product if a proposal by the energy sector regulator to create uniform fuel prices in the country is approved.
The proposal by the Energy Regulatory Commission (ERC) is set to strike hardest petrol consumers in Kenya's second largest city after Nairobi who have been enjoying low prices under the current regime.
ERC has proposed that petrol prices be harmonized to do away with cost disparities in a controlled market. The proposal was instituted by UK firm Economic Consulting Associates, through its Kenyan partner Kurrent Technologies.
The ERC has hired the two companies to study the effect of the current pricing model and make proposals to enhance equality among fuel consumers.
Presently, towns near Mombasa pay the least for fuel because of the low cost of transporting the product to the market.
"The objective of price equalisation is to ensure that retail prices are the same across the country regardless of location or distance," a report by the two companies says as quoted by Business Daily.
"In essence, this is subsidisation of transport costs by consumers, who are nearer the source to offset the burden of those further away."