Kenyans will have to dig deeper into their pockets to purchase fuel after a Sh9 price increase in the latest EPRA fuel price review.
In Nairobi, a litre of petrol will retail at Sh159.12; diesel at Sh140.0 and kerosene at Sh127.94, the highest in Kenya’s history.
This comes at a time when inflation has hit a 27-month high. Kenya’s economy is diesel driven and this means that manufacturers, farmers and service providers will pass the increased fuel cost to consumers, which will further hit households and businesses.
The jump comes at the back of a spike in the global cost of crude with the average landed cost of the commodity that the regulator uses to set the local prices crossing the $100 per barrel mark for the first time.
The Free Onboard ( FOB ) price of Murban crude oil lifted in May 2022 was posted at USD112.48 per barrel an increase of 19.67 per cent from USD 93.99 per barrel in April 2022.
“Over the same period , the mean monthly US Dollar to Kenya Shilling exchange rate depreciated by 0.99 per cent from Sh115.74 per US dollar in April 2022 to Sh116.89 per US dollar in May 2022,” EPRA noted.
The latest pump prices will also see the State pay record-high compensation to the oil marketers to cushion Kenyans, further straining the fuel stabilisation kitty.
The energy regulator says the compensation will be highest for diesel with a litre at Sh48.19, Sh42 per litre of kerosene and super at Sh25.56.
The prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.