Petrol Price Up Ksh 3.47, Diesel Ksh 2.76, Paraffin Ksh 18.20 in August Review

Petrol, Diesel Prices Hiked in Kenya After Excise Duty and Inflation Adjustments

Sections of Ngong Road Phase I.

Petrol price on Friday was hiked by Ksh 3.47 per litre and diesel by Ksh 2.76 and paraffin by Ksh 18.20 attributed to an increase in the price of fuel imports in July by the Energy and Petroleum Regulatory Authority (EPRA).

In Nairobi, a litre of Super Petrol, Diesel and Kerosene will now retail at Ksh 103.95, Ksh 94.63 and Ksh 83.65 respectively.

In Mombasa, a litre of petrol will retail at Ksh 101.57, diesel Ksh 92.26 and kerosene at Ksh 81.29.

In Kisumu, a litre of Super Petrol, Diesel and Kerosene will sell at Ksh 104.62, Ksh 95.49 and Ksh 84.54 respectively.

The new prices will take effect from 15th August up until September 14.

“…. of the average landed cost of imported Super Petrol increasing by 14.18 per cent from UDS279.58 (Ksh 30,278.51) per cubic metre in June 2020 to USD319.23 (Ksh 34,572.60) per cubic metre in July 2020,” EPRA statement reads in part.

The current prices are inclusive of revised rates of Petroleum Development Levy for Super Petrol and Diesel as per Legal Notice No. 124 of 10th July 2020.

In July, the country’s headline inflation decelerated to 4.36 percent from 4.59 percent in June supported by easing food, fuel and demand pressures. Month on month, inflation accelerated to 0.08 percent from -0.50 percent a month before.

However, transport costs increased in the month following a rebound in global oil prices and a controversial VAT adjustment. Month on month, petrol, diesel and kerosene prices rose by 12.21 percent, 22.32 percent and 4.11 percent respectively. 

“However, on an annualized basis, prices on the same products declined by 12.95 percent, 11.62 percent and 35.59 percent respectively.,” NCBA Analysts said.

“However, shilling weakness could increase inflationary pressure especially if imports pick up with the reopening of the economy. A foreign exchange adjustment to oil prices may also see an upsurge in transport costs.”

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