Kenyans will have to dig deeper into their pockets after the Energy and Petroleum Regulatory Authority (EPRA) announced upward review of fuel prices for the period starting September 15 to October 14.
The price of Super Petrol increased by Ksh20 to a record high Ksh179.30 per litre, Diesel increased by Ksh25 to Ksh165 while Kerosene increased by Ksh20 to Ksh147.94 in Nairobi.
“Taking into account the weighted average cost of imported refined petroleum products and in line with government policy to progressively remove subsidy on petroleum fuels, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Ksh 20.18 per litre, Ksh 25 per litre and Ksh 20 per litre respectively,” read the statement in part.
In Mombasa, a litre of petrol, diesel and kerosene will go for Ksh176.98, Ksh162.76 and Ksh145.69 respectively.
Motorists in Nakuru will part with Ksh178.62 for a litre of petrol, Diesel at Ksh164.83 and Kerosene at Ksh147.79.
In Eldoret, Petrol, Diesel and Kerosene will trade at Ksh179.50, Ksh165.72 and Ksh148.67.
Some areas will buy Petrol at a record high, between Ksh180 and Ksh192. These areas include Lamu, Laisamis, Meru, Mtito Andei, Elwak, Mandera, Kericho, Kisii, Nyamira, Homa Bay, Migori, Busia and Kimilili.
EPRA made the announcement late at night, a few minutes to midnight Wednesday, September 14, in what appeared to have been a delay caused by a standoff between key stakeholders.
According to EPRA, the prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
"The average landed cost of imported Super petrol decreased by 24.31% from $1,074.1 per cubic metre in July 2022 to $842.91 per cubic metre in August 2022; Diesel decreased by 13.9% from $1,103.03 per cubic metre to $949.68 per cubic metre while kerosene decreased by 19.07% from $1,111.53 per cubic metre to $899.56 per cubic metre," EPRA explained.
Further, the government will utilize the monies collected on account of the Petroleum Development Levy to compensate Oil Marketing Companies (OMCs) for the difference in cost.
Anxiety went high after President William Ruto announced plans to end the fuel subsidy program as he termed the move unsustainable.
In his inaugural speech, the president pointed out that the taxpayers had spent a total of Ksh144 billion, including Ksh60 billion in the past four months to sustain the program.
He added that should the subsidy continue to the end of the financial year, the amount would increase to Ksh280 billion- a further burden on the taxpayer.
"If the subsidy continues to the end of the financial year, it will cost taxpayers Ksh280 billion, equivalent to the entire national government development budget," Ruto noted.
The statement caused anxiety among stakeholders, including those in the transport sector, who would have to contend with hiked prices.
Kenya Transporters Association Limited (KTA) had urged the Head of State to uphold the fuel subsidy to cushion Kenyans from the ravaging effects.
The association noted that an increase in fuel prices would push the cost of essential commodities and inflation up.
"Any Increase in fuel costs, directly and indirectly, results in an increase in prices of essential goods consumed and services rendered for the common hustler. We kindly request the new administration to continue cushioning the citizens by continuing to subsidize fuel even in the face of government revenue deficit," KTA stated.
