The Energy and Petroleum Regulatory Authority (EPRA) has raised the prices of super petrol by Kes.7.58 per litre to past Kes.130 per litre, an all-time high cost for the commodity in its latest price review.
This is while the cost of diesel and kerosene shoots by Kes.7.94 and Kes.12.97 per litre to Kes115.60, and Kes110.82 per litre respectively in Nairobi.
A litre of petrol in Kenya’s Capital Nairobi will now cost Kes.134.72 rising from Kes.127.14.
The cost of diesel meanwhile spikes to Kes.115.60 from Kes.107.66 while kerosene will cost Kes.110.82 from Kes.97.85
EPRA has attributed the rising fuel prices higher costs for landed petroleum products with the cost of landed super petrol rising by 0.72 per cent, diesel by 4.81 per cent and kerosene by 0.96 per cent.
In Mombasa, petrol will retail at Ksh132.46, diesel at Ksh113.36 while kerosene will sell at Ksh108.57.
The energy sector regulator however masks the true reasons behind the astronomical surge in fuel costs.
The prices are inclusive of 8% Value Added Tax (VAT), in line with the provisions of the Finance Act 2018, The Tax Laws (Amendment) Act 2020, and the reviewed rates for excise duty that were adjusted for inflation as per Legal Notice No. 194 of 2020.
EPRA has maintained the prices of the three fuel products constant for the past three months retailing at Kes127.14 for petrol, Kes107.66 for diesel and Kes 97.85 in Nairobi.
In August, Mining and Petroleum Chief Administrative Secretary (CAS) John Musonik explained that the state would maintain the monthly price of fuel largely due to the set up of a Petroleum Development Fund (PDF).
The fund run partly by the National Treasury has provided respite to consumers by lowering margins paid to suppliers/ oil marketers who are later compensated by the exchequer for the hair cut.
However, due to the lack of funding by the fund, EPRA has been forced to reinstate all of the margins ending with a significant jump in fuel prices
The greater oil costs are expected to hurt Kenyans not just at the pump but also in their pockets as the cost of living surges with the prices of other basic commodities rising in the aftermath of higher petrol costs.
The new fuel prices are effective from Wednesday midnight.