UPDATE 1 p.m.: The Energy and Petroleum Regulatory Authority (EPRA) on Sunday, June 14, announced a revision of fuel prices in the country for the June-July period.
Super Petrol increased by Ksh5.77 while there was a significant drop in prices of Diesel and Kerosene as the costs were slashed by Ksh3.80 and Ksh17.31 respectively. In Nairobi, Super Petrol will retail at Ksh89.1 while Diesel and Kerosene will go for Ksh72.06 and Ksh62.46.
"The changes in this month's prices are as a result of the average landed cost of imported super petrol increasing by 31.54% from $188.70 (Ksh. 20,088) per cubic metre in April 2020 to $248.21 (Ksh. 26,423.34) per cubic metre in May 2020.
"Diesel decreasing by 5.58% from $242.13 (Ksh25,776.09) per cubic metre to $228.62 (Ksh24,337.88) per cubic metre and kerosene decreasing by 51.84% from $262.44 (Ksh. 27,938.21) per cubic metre to $126.39 (Ksh13,454.92) per cubic metre," the statement from EPRA reads in part.
The price of petrol in the country is set to increase ahead of the much-anticipated announcement by the Energy and Petroleum Regulatory Authority (EPRA) on Sunday, June 14.
It is not all doom and gloom as Diesel and Kerosene prices are set for a significant reduction in price after an increase last month.
The new petrol pump prices are expected to jump by at least Ksh6.50 per litre ahead of the price change on Monday, June 15.
Kerosene is set for a huge drop in price as Ksh16.01 is set to be slashed from its current price while diesel is set for a Ksh2.30 reduction price.
International crude prices increased by 33.33% with Murban crude quoted at an average of $23.52 (Ksh. 2503.84) per barrel by close of May 2020.
As a result, the prices of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Illuminating Kerosene (IK) increased by 38.18%, 3.38% and 12.65%, respectively, in the international market.
EPRA on Tuesday, June 9, raised an alarm over various dealers hoarding fuel in some parts of the country.
"The Energy and Petroleum Regulatory Authority has received reports of an artificial shortage of petroleum products in the country particularly in Western Kenya, despite the country being sufficiently stocked," read a notice from EPRA.
A number of fuel dealers in the country had hoarded fuel as they anticipated an increase of the fuel prices starting Monday, June 15.
Dealers who had hoarded petrol are set for a windfall due to the increase in price having bought it at a cheaper cost under the current prices.
Those who had hoarded kerosene and diesel are however set to make a significant amount of losses due to the anticipated reduction.
EPRA had warned that companies or individuals found to deliberately hold back sales of petroleum products will be deemed to have hoarded, and will be liable to a fine of not less than Ksh1 million, or a term of imprisonment of not less than one year, or both.
There has been a drop in fuel demand in the country due to the Covid-19 pandemic in the country which has among other things led to a slowdown in business as well as a cessation of movement in and out of some regions and a nationwide night curfew.
