Fuel prices in Kenya, Petrol, diesel and kerosene were on Saturday hiked by Ksh.5.50 a litre each in the latest maximum price review by the Energy and Petroleum Regulatory Authority (EPRA).
EPRA has attributed the price jump to an increase in the average landed cost of the fuel products with kerosene marking the highest price jump at 31.13 per cent.
Super Petrol is now expected to cost Ksh.150.12 in the capital city Nairobi while the cost of diesel and kerosene will rise to Ksh.131 and Ksh.118.94 per litre respectively.
In Kisumu, a litre of petrol will go for KSh150.53; diesel KSh131.70 and kerosene Sh119.66.
In Mombasa, a litre of petrol will be sold at KSh147.86; diesel at KSh128.76and kerosene at KSh116.69.
“The Government will utilise the Petroleum Development Levy (PDL) to cushion consumers from the otherwise high prices,” said 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.
However, Analysts from Cytonn Investments note that “Despite the additional Kshs 24.9 billion for stabilization of oil market prices and the rationalization of Capital expenditure, allocated in the recently assented Supplementary Budget, the National Treasury would have to disburse an estimated Kshs 15.0 billion monthly to meet the full subsidy in the period of review. As such, the additional amount to the program would be depleted in two months.”
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