Petrol, diesel prices to rise in Friday review

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EPRA revises fuel, petrol prices
PHOTO/COURTESY

The price of a litre of petrol in Nairobi is on Friday expected to increase by Ksh. 3.32 to Ksh.103.80 while a litre of diesel will rise by Ksh. 2.57 to Ksh. 94.44, a brief sent to the Petroleum Industry by the Energy and Petroleum Regulation Authority (EPRA) has revealed.

The Petroleum Ministry, in a news article by the Business Daily, attributed the hike, the second in as many months, to a jump in the global prices of crude oil which has affected the cost of imported refined fuel.

A surge in the petrol levy, which was introduced on July 10, to Ksh.5.40 from Ksh.0.40 has consequently augmented pump prices. The jump in levy fees is anticipated to earn the government close to Ksh. 2 billion per month from fuel consumers.

Since January, slowed economic activities owing to the coronavirus pandemic have led to a decrease in demand of the commodity whose production had already been brought to a standstill following a row between Saudi Arabia and China over production cuts. The row has however been improving in the past two months and this, alongside a hike in the number of vehicles operating in the world’s largest cities has lifted crude oil prices.

The rise in fuel prices is also anticipated to affect the cost of goods and services piling more pressure on Kenyans who have already started feeling the effects of inflation in the country, which stood at 4.36 percent in July.

The increase in the price of oil will affect the prices of commodities in the country since producers and manufacturers take into account operational costs spent on energy before slapping price tags on commodities. A large percentage of Kenya’s population depend on kerosene and gas for lighting and cooking while diesel is often used in transportation and running of agricultural equipment making crude price a key factor of the rate of inflation.

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