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No respite as fuel prices jump higher

Fuel prices in the country have jumped to a record high, despite the government’s fuel subsidy. For the next one month, a litre of super petrol in Nairobi will cost Sh159.12, diesel (Sh140) and kerosene (Sh127.94), following the latest review by the Energy and Petroleum Regulatory Authority.

While announcing the latest fuel prices on Tuesday, Epra said in a statement that the government will utilise the Petroleum Development Fund (PDL) to cushion consumers from the otherwise high prices.

While Nairobi motorists will pay Sh159.12 for a litre of petrol, the actual price is Sh184.68, meaning that the government will pay Sh25.76 form the fuel subsidy. The subsidy for diesel is Sh48.19 per litre while that for kerosene is Sh42.43 per litre

Epra said the prices are inclusive of taxes and adjusted for inflation.

In Mombasa, a litre of petrol will cost 156.86 while in Kisumu and Eldoret it will retail at Sh159.53. In Nakuru, a litre of super petrol will cost Sh158.64.

The authority said the price revision was partly influenced by importation costs. It said that the average landing cost of the imported super petrol increased by 5.96 per cent from USD826.77 per cubic metre in March to USD876.05 per cubic metre in April.

This is the highest fuel prices have risen the highest in Kenya’s history.

Rising fuel prices have been a leading contributor to rising commodity prices in the country over the past year.

In May, the country was rocked by a wave of fuel shortages that manifested in long queues at filling stations. This was occasioned by a standoff between large oil marketers and their small rivals over supplies.

Market inquiries revealed that large oil marketers had opted to focus on their own franchise outlets. This dealt a blow to independent oil marketers who have for years depended on the large marketers for fuel supplies.