The pump prices of oil in Kenya are expected to increase by KSh 10 each month until February of 2024.
This information was disclosed by Moses Kuria, the Cabinet Secretary for the Ministry of Investments, Trade & Industry of The Republic of Kenya, on his X (formerly Twitter) page.
The minister urged Kenyans to brace themselves in preparation for the increasing fuel cost.
"Global crude prices are on an upward trajectory. For planning purposes expect pump prices to go up by KSh 10 every month till February," Kuria tweeted.
The country’s Energy and Petroleum Regulatory Authority (EPRA) announced that the prices of three main fuel products in Kenya will, from Friday, September 15, surpass the KSh 200 ($1.36) mark, a new record for Kenya.
"The maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol increases by KSh 16.96, Diesel increases by KSh 21.32 per litre & Kerosene increases by KSh 33.13 per litre," EPRA stated.
This translates to Super Petrol retailing at KSh 211.64 per litre, diesel at KSh 200.99 per litre, and kerosene at KSh 202.61 per litre in Nairobi, with slight upward variations in other regions of the country.
The regulatory body clarified that these updated fuel prices encompass a 16% Value Added Tax, which is in line with the provisions of the Finance Act 2023, the Tax Laws Amendment Act 2020 and the revised rate for excise duty adjusted for inflation.
The distressing surge in fuel prices, coinciding with Kenyans coping with a high cost of living and the prospect of potential tax hikes, can be attributed to global upward reviews of petroleum products, and the increased landed costs.
The average landed cost of imported Super Petrol increased by 4.80% from $739.21 per cubic metre in July 2023 to $774.67 per cubic metre in August 2023; Diesel increased by 12.52% from $701.99 per cubic metre to $789.89 per cubic metre while Kerosene increased by 19.79% from $690.58 per cubic metre to $827.26 per cubic metre.
Kenya currently purchases all its petroleum products in refined form so the impact is expected to be felt.
Echoing Kuria’s sentiment, David Ndii, President William Ruto's economic adviser, warned Kenyans to brace for tough times ahead following the dwindling economic fortunes.
Early this month, President Ruto announced a shift to electric motorbikes to combat rising fuel costs and environmental concerns.
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