Fuel Prices have increased further in new monthly rates announced by the Energy and Petroleum Regulatory Authority (EPRA). Super petrol will retail for KSh 5.43 more starting Wednesday, while those of diesel and kerosene have increased by KSh2.24 and KSh2.40 respectively.
“The changes in this month’s prices have been as a consequence of the average landed cost of imported super petrol, diesel and kerosene.
Super petrol rose by 11.39% from $620.54 to $691.25, diesel by 2.75% from $624.25 to $641.51 and kerosene by 2% from $662.55 to $675.55.
The pump prices are inclusive of 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018.
Further, Kenya’s inflation accelerated to a 19-month high of 6.58% in April, attributed to poor weather and the continued rise in global oil prices.
“Oil markets have tightened, thanks to OPEC production cuts and the tighter sanctions on Iran by the US. As a result, oil prices have risen by nearly 40% thus far this year,” said CBA Market Analysts.
“On a brighter note, the onset of long rains coupled with potential government subsidies may help cool off food inflation. Moreover, non-food non-fuel inflation pressures will remain subdued underpinned by lethargic credit markets. However, its persistence signals a continued lack of demand in the economy and should be a concern for policymakers,” they noted in the CBA Monthly (May) Economic Report.