According to the Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo, fuel prices are set to increase this month, marking the second consecutive rise.
Kiptoo, while speaking to Citizen TV on Wednesday, February 12, revealed that the price increase is due to a surge in global crude oil prices in January.
“We did have a bit of a spike in international prices sometime in early January, and it's because of certain geopolitical factors. Some sanctions were put on Russian products by the outgoing US administration, but those sanctions have not been lifted,” stated Kiptoo.
In January, global oil prices experienced a notable surge. Brent crude futures climbed to a four-month high of $81 per barrel (about Ksh10,465 in the current exchange rates) by mid-month, marking an increase of approximately $8 (about Ksh1,033 in the current exchange rates) from the previous month.
This rise was driven by intensified US sanctions on Russian and Iranian oil exports and a severe cold snap across the Northern Hemisphere, which boosted demand for heating fuels.
Kiptoo explained, “That led to a bit of a jump in the flat price, and we are having our computations going on today. Hopefully, once we are able to ascertain where the prices are going, we will also be able to consult the government and then make a decision on whether we are going to apply stabilisation or not.”
The announcement comes just a day before the monthly fuel prices are released. This means motorists could be forced to spend more on transportation and even manufacturing.
A price increase is likely to lead to a rise in commodity prices. Coincidentally, the increase in fuel prices comes as inflation is also on the rise.
However, Kiptoo asserted that the authority is still computing the data and is in talks with the government to set the prices for the next month.
“We are still computing, and hopefully, we will be able to land at a place where consumers are comfortable,” he said.
Last month, the authority increased prices for Super Petrol, Diesel, and Kerosene by Ksh0.29, Ksh2, and Ksh3 per litre, respectively.
A litre of Super Petrol in Nairobi is currently retailing at Ksh176.58, Diesel at Ksh167.06, and Kerosene at Ksh151.39.
