Kenyan commuters will now pay Ksh 103.95 for a litre of petrol as fuel prices rise for the month of August. The latest Energy & Petroleum regulatory Authority price review indicate that Super Petrol prices will increase by Ksh 3.47. Similarly, the price of a litre of Diesel will increase by Ksh 3.47 to Ksh 94.63.
The uptick in fuel prices is likely to replicate itself on the cost of transport, which rose by 4.01% last month. Petrol prices rose by KSh 11 in the month of July. Households will pay Ksh 18.20 more for a litre of Kerosene, now retailing at Ksh 83.48 from Ksh 65.45 last month after the country resumed paraffin imports since April.
The average cost of imported super petrol rose by 14.18% to $319.23 per cubic metre. Similarly, Kenya imported a cubic metre of Diesel at $333.27, a 10.3% increase in import costs. Kerosene recorded the highest increase in import costs, which rose by 127.87% to $288.01, from $126.39 in June.
Depreciating Shilling Value, Rising Crude Oil Costs Pushing Fuel Prices
The rising fuel prices are because of soaring crude oil prices which rose by 21% between June and July.
“The Free on Board prices of Murban Crude Oil lifted in July 2020 was posted at US$ 44.28 per barrel, an increase of 21.85% from US$ 36.34 per barrel in June 2020,” reads EPRA‘s report.
Additionally, the depreciating shilling further pushes the rising fuel prices. The mean monthly dollar rate depreciated by 0.92% from Ksh 106.48 in June to Ksh 107.46 in July. Yesterday, the Kenyan shilling touched a record low, closing at Ksh 108.300 against the US dollar.
The value of the Kenyan Shilling depreciated by 6.3% in the first 7 months of 2020.
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