Kenyan Motorists to Face Soaring Fuel Prices: prices all time high
In a recent announcement that has sent ripples across Kenya, the Energy and Petroleum Regulatory Authority (EPRA) disclosed a substantial increase in fuel prices set to take effect imminently. This development has far-reaching implications for Kenyan motorists and consumers alike, and it comes at a time when economic concerns are paramount.
Fuel Price Increases at a Glance
Let’s dive into the specifics of these fuel price changes:
| Fuel Type | Increase in Price | Previous Price (per Litre) | New Price (per Litre) |
|---|---|---|---|
| Super Petrol | Ksh. 16.96 | Ksh. 194.68 | Ksh. 211.64 |
| Diesel | Ksh. 21.32 | Ksh. 179.67 | Ksh. 200.99 |
| Kerosene | Ksh. 33.13 | Ksh. 169.48 | Ksh. 202.61 |
| Region | Super Petrol Price (per Litre) | Diesel Price (per Litre) | Kerosene Price (per Litre) |
|---|---|---|---|
| Nairobi | Ksh. 211.64 | Ksh. 200.99 | Ksh. 202.61 |
| Mombasa | Ksh. 208.58 | Ksh. 197.93 | Ksh. 199.54 |
| Kisumu | Ksh. 211.40 | Ksh. 201.16 | Ksh. 202.77 |
These price increases include the 16% Value Added Tax (VAT) as per the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised excise duty rates adjusted for inflation as per Legal Notice No. 194 of 2020.
Understanding the Reasons Behind the Price Surge
| Reason for Price Increase | Percentage Increase | Import Cost Comparison |
|---|---|---|
| Super Petrol | 4.80% | July 2023: US$739.21 (Ksh.108,516.03) |
| Diesel | 12.52% | August 2023: US$774.67 (Ksh.113,721.56) |
| Kerosene | 19.79% | July 2023: US$701.99 (Ksh.103,052.13) |
| August 2023: US$789.89 (Ksh.115,955.85) |
EPRA’s Director General, Daniel Kiptoo Bargoria, explained that these price hikes are attributed to the weighted average cost of imported refined petroleum products. This underscores the intricate interplay of international market dynamics, supply chains, and economic variables influencing fuel prices in Kenya.
The Wider Impact
The implications of these fuel price increases extend beyond the fuel pumps. Higher fuel prices can potentially affect transportation costs, goods, and services, exerting additional pressure on Kenyan households already grappling with rising living expenses.
As these new fuel prices take effect, prudent financial planning becomes essential. Kenyan consumers and businesses must adapt to these changing economic circumstances, finding ways to manage their expenses efficiently while maintaining their daily routines.