No Respite for Kenyans as Petrol, Diesel Price Hike

Petrol prices have hit a nine-year high on rising crude costs in the global market

Petrol price in Kenya continues to surge with the recovery in crude oil prices, super petrol, diesel and kerosene shot by Ksh7.63, Ksh5.75 and Ksh5.41 per litre, respectively in the latest review by the Energy and Petroleum Regulatory Authority (EPRA).

EPRA attributed the rise to the recovery in crude oil prices, which increased the cost of imported refined fuel, from $55.27 a barrel to $61.61 and low $17.64 in April last year. 

“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol increasing by 14.97 per cent from $391.24 per cubic metre in January 2021 to $449.82 per cubic metre in February 2021. Diesel price increased by 12.29 per cent from $377.55 per cubic metre to $423.95 per cubic metre and kerosene increased by 13.26 per cent from $347.19 per cubic metre to $393.23 per cubic metre,” EPRA said.

Following the adjustments, a litre of super petrol, diesel, and kerosene in Nairobi will now retail at Ksh122.81, Ksh107.66 and Ksh97.85, respectively.

In Mombasa, super petrol will be sold at Ksh120.41, diesel at Ksh105.27, and kerosene at Ksh95.46 per litre, while in Kisumu, a litre of super petrol will retail at Ksh123.36, diesel at Ksh108.46, and kerosene at Ksh98.68.

The prices announced will be in force from 15th March to 14th April.

Last month, the prices of super petrol, diesel, and kerosene prices were increased by Ksh8.19, Ksh5.51 and Ksh5.32 per litre, respectively.

EPRA said the prices were inclusive of eight 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 Free On board (FOB) price of Murban crude oil lifted in February 2021 was posted at $61.61 per barrel an increase of 11.47 per cent from $55.27 per barrel in January 2021.

Over the same period, the mean monthly US dollar to Kenya shilling exchange rate appreciated by 0.20 per cent from Ksh109.89 per US dollar in January 2021 to Ksh109.67 per dollar in February 2021.