NAIROBI, KENYA: Kenyans will pay more for fuel prices beginning Monday midnight following adjustment cutting across Kerosene, Super Petrol, and Diesel.
The Energy and Petroleum Regulatory Authority (EPRA) increased the prices of Petrol and Diesel by Sh0.97 and Sh1.12 per litre respectively, Kerosene price will go up by Sh1.93 per litre effective midnight.
The prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the tax laws (amendment) act 2020, and the revised rates for excise duty adjusted for inflation.
The adjustments come as commodity dealers warned Kenyans to get ready for higher fuel prices in the coming months following the weakening shilling against the US dollar and an anticipated increase in demand.
Boris Chabeda a fuel dealer is calling on the government to put up measures in strengthening the shilling against the dollar and revise the method used to calculate the monthly fuel prices to cushion citizens from paying higher prices in the coming months
“The transport sector is picking up from the lockdowns witnessed in better parts of this year, we expect the sector to be more active in the coming year more so with discovery of coronavirus vaccine which will require freight services,” he said noting that movements will increase demand for fuel.
“The other factor that is likely to drive the price up is weakening of Kenyan Shilling against the dollar, the Central Bank needs to act to restore the currency to its previous levels or else importers will need a lot of dollars to import the commodity.”
The shilling has been under pressure against the dollar for most of this year after earnings from the crucial tourism sector collapsed due to the coronavirus crisis. The currency was exchanged at 111.5 against the US dollar on Monday.
“Over the same period, the mean monthly US dollar to Kenya Shillings exchange rate depreciated by 1.12 per cent from Sh109.14 per dollar in October to Sh110.36 per dollar in November,” EPRA said.
In a statement to newsrooms, EPRA says this month’s prices are as a consequence of the average landed cost of imported Super Petrol increasing by 0.65 per cent from US$ 316.64 per cubic metre in October to US$318.71 per cubic metre in November.
Diesel increased by 1.75 per cent from US$ 288.83 per cubic metre to US$293.88 per cubic metre and Kerosene increasing by 6.16 per cent from US$261.17 per cubic metre to US$277.27 per cubic metre.
In Mombasa, Super Petrol will retail at Sh104.43 per litre while Diesel and Kerosene will retail at Sh89.43 and Sh81.17 per litre respectively.
In Nairobi Super Petrol and Diesel will retail at Sh106.82 and Sh91.82 respectively while Kerosene buyers will part with Sh83.56 per litre. Kisumu residents will pay Sh107.45 for Petrol per litre while diesel will retail at Sh92.66 and Sh84.43 per litre in the lakeside city.