The Energy Regulatory Commission will on Friday announce the new fuel prices as controversy surrounds the 16 per cent value added tax on petroleum products.
With international crude prices increased last month and the VAT that is currently facing the nation, experts predicted the regulator will likely up pump prices.
ERC’s pricing is clouded in uncertainty with a contempt proceeding for failing to respect a Bungoma High Court order.
Justice Stephen Riech on Wednesday quashed the implementation of the 16 per cent levy on petroleum products to enable President Uhuru Kenyatta to either assent to or reject the amended Finance Bill passed by the National Assembly.
Friday’s price revisions are facing a problem due to the increase of costs for crude oil in August which will determine prices since landed cost is a key component of the monthly price revisions.
The crude oil prices have been on the rise from a low of Ksh7500 per barrel at the beginning of the month to yesterday’s high of Ksh7,900 per barrel (according to Brett crude data), meaning ERC may be forced to raise the prices.
ERC uses the Platts data on the price of Brett crude as the benchmark for international oil prices.
Before the VAT was loaded on September 1, ERC had announced a Ksh1.53 rise on the price of super petrol which was retailing at Ksh113.73 before the VAT later pushed it to Ksh128.8 two weeks ago.
The price of diesel which had fallen slightly to Ksh102.74 per litre in Nairobi now retails at Ksh115.08 in Nairobi.
The levies include road maintenance, petroleum development levy, petroleum regulatory levy, as well as railway development levy.
