Paint sector mulls price increase
Developers have been warned of a sharp increase in the cost of paint products due to the high cost of crude oil which is causing ripples globally.
Crown Paints Chief executive Rakesh Rao said yesterday that the firm will increase the price of its products in the wake of rising prices of crude oil triggered by the Russia-Ukraine conflict.
“It is a supply problem and as a result, we have been compelled to pass on those logistical costs to our consumers by 8 per cent, which will rise to 10 per cent depending on how the situation is managed,” said Rao in a telephone interview.
Crude Oil
Prices of crude oil have a bearing on almost everything including the paint, coating and adhesive manufacturing industry which has been rising disturbingly since the war broke out almost two months ago.
Brent futures, which is a global benchmark for crude oil prices, spiked to $120 (Sh) a barrel just last week as the global market restricted purchases of Russian crude oil and scrambled to source other grades.
Closer home, the impact of the conflict is fast taking a toll on Kenyans' daily lives with a growing number of gas stations or petrol stations running empty, while cost of living has stretched millions of households who are now disenchanted.
The fuel shortage has, however, been blamed on oil marketers hoarding the precious commodity following failure of the state to compensate them for the rising costs of importing oil products through a subsidy scheme.
In its defense over the weekend, the Kenya Pipeline Company (KPC) confirmed there was sufficient fuel stocks in all its depots across the country.
Independent marketers
This as independent oil marketers yesterday threatened to start exporting their stock to neighbouring countries should the government fail to offset the pending subsidies.
A fuel shortage is being felt in most sectors of the economy especially those that rely on petroleum products. Some players say they now prefer exporting extra stock to neighbouring countries which currently have higher margins and guaranteed payment. Mombasa based Safari Petroleum Company managing director Ali Mbogo said the government must pay in full the pending arrears failure to which the problem may escalate and cause more pain to the public.
