Kenya Today
Petrol Prices Increase Again and Set to Hit Historic High
The price of petrol is set to increase by Sh. 4.30 to Sh. 127.11 per liter in Nairobi as briefed by the Energy Petroleum Regulatory authority (EPRA). This price increase is set to be effective from Wednesday midnight resulting in the highest increase ever recorded in the history of Kenya since 2018.
As seen by Business Daily, the price of petrol will increase by Sh. 4.30 to Sh.127.11 while that of diesel from Sh. 107.66 to Sh. 109.96. The increase in the price of fuel over the past 3 months stirred anger among Kenyans whose cost of living was greatly affected. This forced Kenyans living in the border towns to seek cheaper fuel in neighboring countries such as Uganda and Tanzania.
Expensive fuel prices have been linked to the recovery of crude oil prices says the energy regulator. The pump prices based on the barrel is currently at $61.61 from the previously $55.27$ and by Wednesday midnight the price will be reviewed to $65.41. The seven levies and two taxes that EPRA takes into account when setting fuel prices have been blamed for the increase in the Price of Petroleum products. According to research, the levies account for 48% of the current petrol costs.
“We need to look at the taxes. As a committee, we will propose changes to the Finance Bill for the new budget, “ said David Gikaria, Chairman of the National Assembly Energy Committee.
The Finance Bill plays a role of a legal instrument used by the Parliament and Treasury to introduce new taxes and scrap lower existing taxes. With the changes greatly affecting the pricing of consumer products and services, the Treasury is required by law to table the Finance Bill in Parliament. Accordingly, this should take effect before April 30th and needs the president’s approval by 30th June.
The cost of fuel prices is a key determinant of the rate of Kenya’s inflation. The majority of the Kenyan population depends on Kerosene and gas for cooking while diesel is used in the transport and agricultural industry. While many Kenyans this year expected a speedier economic recovery from the pandemic, the increased fuel prices are signaling a panic to homes and businesses that have struggling to survive.
By Lilian Waeni
