Kenya Faces Petrol Price Hike of Up to Sh7.80
The fuel price increase is set to affect the prices of super petrol, diesel, and kerosene, with the new prices expected to be published soon. The move is intended to reflect current business realities and compensate players in the value chain, but it may have a significant impact on the cost of living in Kenya.
Fuel prices in Kenya are set to rise significantly due to a new petroleum pricing regime, with super petrol, diesel, and kerosene prices increasing by up to Sh7.80, Sh7.75, and Sh7.67 per litre, respectively. The Energy and Petroleum Regulatory Authority (Epra) has implemented this change to reflect current business realities and compensate players in the value chain.
The price increase is attributed to a rise in the margin charged by oil marketing companies (OMCs) and an increase in transportation costs. The margin increase amounts to Sh7.12, while transportation costs have risen by Sh0.64. Epra's Director-General, Daniel Kiptoo, stated that the increase is necessary to ensure the sustainability of the petroleum industry.
To mitigate the impact of the price hike on Kenyans, Epra is phasing the increase. The regulator is expected to publish the maximum fuel prices for the March-April pricing cycle soon, providing clarity on the new prices. The move is likely to affect various sectors, including transportation and manufacturing, which rely heavily on fuel.
As the new pricing regime takes effect, Kenyans can expect to pay more for fuel, which may have a ripple effect on the overall cost of living. The government and regulatory authorities will be closely watched to see how they balance the need to support the petroleum industry with the need to protect consumers from rising fuel costs.
