Consumers in Kenya pay Kshs. 5 more for one liter of premium petrol, just like diesel for the next according to the latest fuel revision by the Energy and Petroleum Regulatory Authority (EPRA).
However, EPRA protected kerosene consumers from further price hikes given the weak shilling and rising global crude prices.
Between January and February, the average landing cost per cubic meter of imported premium gasoline rose 13.34% from $596.79 to $676.40, while the same volume of diesel also rose 11.74% from $606.16 to $677.31 .
Similarly, the average landing cost of imported kerosene per cubic meter increased by the highest range of 15.94% from $534.38 to $619.57.
“Applicable pump prices for this cycle for premium petrol and diesel are up Kshs. 5, while that of kerosene was maintained at the same level as in the immediately preceding cycle. The government will use the Petroleum Development Levy to cushion consumers from otherwise high prices,” said Kiptoo Bargoria, EPRA Directoro General.
The local currency’s weakening during the review period is also a catalyst for the fuel hike, as the Kenyan shilling depreciated 0.18% against the US dollar, with a monthly average of Kshs. 113.79 in February versus Kshs. 113.58 in January.
As of Tuesday, consumers in Nairobi will be charged a maximum of Kshs. 134.72 per liter premium petrol and Kshs. 115.60 for diesel while kerosene is Kshs. 103.54 per liter.
On the other hand, consumers in Mombasa pay Kshs. 132.46, 113.36 and Kshs. 101.29 per liter of premium petrol, diesel and kerosene.
Pump prices are expected to rise significantly in the coming months, which analysts attribute to the war between Russia and Ukraine, which has already sent a shockwave to the commodity market with price hikes.
Last week, a Brent was trading at $130 a barrel in the international oil market, its highest level since 2008, as a result of sanctions against Russia, the world’s second largest oil exporter.
Mwendia Nyaga, CEO of Oil and Energy Service Limited, told KBC Channel 1 last week that the war has only made matters worse as oil prices have already started to rise amid increased demand after production stopped last year due to had been paralyzed by COVID-19.
“Even before the invasion took place, the market became very nervous and prices started to rise. For now, just imagine how many barrels will be withdrawn if some supply routes are closed and then oil from Russia cannot get to many places in the world. Before the war, Russia supplied 10% of the world’s total oil consumption, along with Saudi Arabia and the US.”
He continued, “There is a possibility that Kenya is struggling not only with high oil prices but also with limited supplies.”