Fuel prices have hit a new high setting up the country for a new round of increases in the price of goods ans services.
On Tuesday, June 14, the Energy and Petroleum Regulatory Authority (Epra) increased fuel prices by KSh 9 per litre making it the highest in Kenya’s history.
This raised the cost of super to KSh 159.12 per litre while diesel will retail at KSh 140 per litre in Nairobi County.
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Kerosene also went up and it will now retail at KSh 127 per litre.
“The applicable pump prices for super petrol, diesel and kerosene have been increased by Sh9 per litre from the immediate previous cycle,” the Epra said in a notice.
Epra added that the government will utilise the Petroleum Development Fund (PDL) to cushion consumers from the high prices.
While motorists will pay KSh 159.12 for a litre of petrol, the actual price is KSh 184.68.
This means that the government will pay KSh 25.76 form the fuel subsidy.
The subsidy for diesel is KSh 48.19 per litre while that for kerosene is KSh 42.43 per litre.
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Epra stated that the average landing cost for importing of super petrol increased by 5.95 per cent while diesel increased by 10.90 per cent and kerosene decreased by 0.34 per cent.
With the rise in fuel prices, prices of basic goods and services are expected to go high even as inflation hit a 27-month high.
Following the latest rise, petrol prices increased by KSh 24 per litre in three months making it the highest increase in the cost of diesel and super since Kenya started setting pump prices.
In May, Energy Cabinet Secretary, Monica Juma, warned Oil Marketing Companies (OMCs) and retailers from selling fuel at prices higher than the gazetted ones.
CS Juma warned OMCs to either comply or exit the Kenyan market.
“Kenya will not tolerate any entity or person causing distress either by creating an artificial problem or stress. Any entity that is not ready, able, or willing to work within the framework of the laws of Kenya is invited to vacate this market promptly,” the CS stated.