As the festive season begins, fuel prices in Kenya have shot up after the Energy and Petroleum Regulatory Authority (EPRA) set new prices for the period 15th December 2020 to 14th January 2021. Super Petrol will retail at KSh106.82, up from KSh105.85, while Diesel and Kerosene will sell at KSh 91.82 and KSh 83.56 respectively.
The increase is due to a rise in the average landed cost of imported fuel. The cost of imported super petrol jumped by 0.65%, diesel went up by 1.75% and kerosene had the sharpest increase of 6.16%.
EPRA said that the new prices factor in the 8% Value Added Tax and the revised rates for excise duty. The energy regulatory authority sets the maximum retail price of fuel on the 14th of every month. In November, the authority revised the fuel prices downwards due to a drop in the average landed cost of imported fuel.
As a result of the increase in fuel expenses, the cost of goods, energy, and transportation is set to rise. In addition, treasury’s plan to re-introduce 16% value added tax on goods on 1st January will only drive up the cost of living for Kenyans.