Pain at the pump as fuel prices cross Ksh200 mark in new review

 

Kenyans who rely on fuel products for their day-to-day activities will be forced to dig deeper into their pockets after the government hiked prices in the latest review.

In a statement on Thursday night, the Energy and Petroleum and Regulatory Authority (EPRA) increased Super Petrol prices by Ksh16.96, Diesel by Ksh21.32 and Kerosene by Ksh33.13.

The changes that took effect today, September 15, saw the retail price of a litre of Super Petrol in Nairobi rise to Ksh211.64, Diesel Ksh200.99, and Kerosene Ksh202.61.

EPRA Managing Director Daniel Kiptoo attributed the hike in fuel prices to an increase in weighted average cost of imported refined petroleum products.

“The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” he stated.

“The average landed cost of imported Super Petrol increased by 4.80% from US$739.21 (Ksh107,909.88) per cubic metre in July 2023 to US$774.67 (Ksh113,086.33) per cubic metre in August 2023; Diesel increased by 12.52% from US$701.99 (Ksh1022,476.50) per cubic metre to US$789.89 (Ksh115,308.14) per cubic metre while Kerosene increased by 19.79% from US$690.58 (Ksh100,810.87) per cubic metre to US$827.26 (Ksh120,763.41) per cubic metre.”

Last month, EPRA retained fuel prices at Ksh194.68 for Super Petrol, Ksh179.67 for Diesel and Ksh169.48 for Kerosene.

The prices were expected to shoot to a new high due to higher international prices and the recently approved 16% Value Added Tax (VAT) on petroleum products.

EPRA boss said the government had taken a decision to cushion consumers by 'stabilising' the fuel prices.

“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilize pump prices for the August to September 2023 price cycle. Oil Marketing Companies (OMCs) will be compensated from the Petroleum Development Fund (PDF)," Kiptoo said.   BY K24 NEWS