Update: The Government through the Energy and Petroleum Regulatory Authority (EPRA) announced maximum wholesale and retail prices of petroleum products, which will be in force from Saturday, February 15 to Saturday, March 14.
"Super petrol and diesel increased by Kshs 2.67 per litre and Kshs 2.13 per litre respectively while kerosene decreases by Kshs 1.26 per litre.
"The purpose of the fuel pricing regulations is to cap the wholesale and retail prices of petroleum products, which are already in the country so that the importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers," the agency stated via Twitter on Friday, February 14.
With these new changes, super petrol, diesel and kerosene prices will retail at Ksh 113.87, Ksh 104.45 and Ksh 102.69 respectively.
The agency also announced that it had adjusted electricity prices. This is after the Kenyan shilling stabilised against the dollar in expenditure related to the power sector, according to a financial analyst.
On Friday, February 14, through the Kenya Gazette, EPRA announced that it had reduced foreign exchange fluctuation by minus -0.89 Kenya cents per kWh (Kilowatts per hour) for all meter readings to be taken.
It, however, increased fuel energy cost charge by 250 Kenya cents per kWh for all meter readings to be taken in February.
Fuel cost charge is the added cost or rebates to the consumers as a result of fluctuations in world prices as well as fluctuations in the quantity of oil consumed by electricity generation.
"All prices for electrical energy will be liable to a Water Resource Management Authority (WRMA) levy of plus 2.11 Kenya cents per kWh for all meter readings to be taken in February," the Gazette Notice further stated.
This increase in electricity price may have been triggered by the rise in fuel prices over the past years.
In 2020, fuel prices were expected to soar higher following the escalating tensions between the US and Iran, an oil-producing company.
Oil prices have also been affected by the outbreak of coronavirus in China.
A report by Consumer News and Business Channel (CNBC) on Friday, February 14, stated that the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) dramatically lowered their oil demand growth forecasts this year (2020) as a result of the deadly flu-like virus.
The outbreak restricts the flow of international trade as staff of the vessels bringing goods are subjected to scrutinisation against the disease.
In January the Energy and Petroleum Regulatory Authority had increased fuel energy cost charge, foreign exchange fluctuation and the water resource management authority levy.
