Motorists to pay more as fuel prices go up in latest review

Motorists will pay more for fuel from midnight on Tuesday as the Energy and Petroleum Regulatory Authority (EPRA) effects higher petroleum costs.

The revision which reverses a price cooldown in November sees petrol costs rise by 97 cents while diesel prices will lift by Ksh.1.12 per litre.

Similarly, kerosene costs are set to increase by Ksh.1.93 per litre.

The marginal increase in the cost of fuel is attributable to rebounding international crude prices along with a weakening shilling which now sees Kenya incur a greater cost for fuel imports.

“The changes in this month’s prices are as a consequence of the average landed cost of imported super petrol increasing by 0.65 per cent, diesel increasing by 1.75 per cent and kerosene increasing by 6.16 per cent,” EPRA noted in a statement on Monday.

Crude prices per barrel have been on a steady rise in recent months, occasioned by the continued reopening of world economies.

The price of crude oil per barrel in November for instance averaged Ksh.4,799 ($43) in comparison to Ksh.1,967 ($17.64) in April, the lowest cost per unit in this calendar year.

Meanwhile, the mean exchange rate has spiked with the shilling changing hands for the dollar at an average Ksh.110.36 in November in contrast to Ksh.101.32 in January.

A litre of super petrol will now retail at Ksh106.82 in the Capital Nairobi while diesel and kerosene will retail at Ksh91.82 and Ksh.83.56 respectively.

The impact of the higher fuel costs will be sustained inflation pressure ahead of the close of the year constraining Kenyans purchasing power.

The rate of inflation in November already stood at its highest since May this year at 5.3 per cent (revised) with higher food costs exerting greater pressures on consumer spending.

The new prices are expected to hold to mid-January 2021.