Ksh. 5.72 Increase: Kenyan Petrol Prices Hit a New High

Government’s Measures to Address Rising Fuel Prices

In response to the surge in fuel prices, the Kenyan government has announced measures to alleviate the financial burden on citizens.
Energy CS Davis Chirchir led a press briefing to explain the government’s approach.
Instead of reverting to fuel subsidies, the government will utilize the Petroleum Development Levy (PDL).
An amount of Ksh. 1.77 billion will be allocated to cushion the public from recent fuel price hikes.
Removal of the PDL will result in reduced prices for various petroleum products, such as Ksh. 3.07 less for super petrol, Ksh. 11.64 for diesel, and Ksh. 9.6 for kerosene.

The Petroleum Development Levy is one of nine taxes imposed on petroleum products in Kenya.
It plays a significant role in stabilizing fuel prices.
The government’s decision to use the PDL instead of traditional subsidies demonstrates its commitment to addressing rising fuel costs.
The move to employ the PDL was made following a Cabinet meeting and received high-level government backing.
This reflects a proactive approach to managing fuel prices amid global market fluctuations.

Public concern remains high despite government efforts to mitigate rising fuel prices.
A recent sharp increase in fuel prices, exceeding Ksh. 200 per liter for petrol, has strained many Kenyan households.
Moses Kuria, a former Trade Cabinet Secretary, predicts that fuel prices will continue to rise by at least Ksh. 10 every month until February.
Kuria’s predictions are based on the global upward trajectory of crude oil prices.
He also mentions the impending El Nino weather phenomenon and its potential impact on fuel prices.
While these predictions have sparked concern, transparency and clear communication from both the government and responsible leaders are crucial to help citizens prepare for and navigate these challenges.