EPRA Hikes Fuel Prices Sharply as Subsidy Ends and Middle East Tensions Bite
The Energy and Petroleum Regulatory Authority (EPRA) has increased petrol by Ksh12.93 per litre, diesel by Ksh9.90, and kerosene by Ksh28.49 in a hike that comes amid pressure in the Middle East.
With the new changes, Super Petrol will now retail at Ksh226.96 per litre in Nairobi, while diesel will sell at Ksh227.76 and kerosene at Ksh219.87.
Why Prices Have Risen
The sharp increase has been informed by a raft of factors, including the government’s decision to halt the fuel subsidy that has been in effect since the April pump cycle.
“We will not introduce the stabilisation for this pricing cycle so that the amounts being saved today can be utilised in the future if the prices were to go burst,” the EPRA DG asserted.
According to EPRA Director General Engineer Edward Mwirigi Kinyua, demand for fuel in the market and the changes in the U.S.-Israel war on Iran are also to blame for the high pump prices.
“September has been the worst month ever since this war broke out. Super petrol has reached USD 1,300 per metric tonne from the initial USD 600 per metric tonne,” Kinyua told the press on Wednesday, October 14.
Earlier this week, crude oil prices rose to a high of USD 106 per barrel, although the prices have since eased.
VAT Reduction Extended
Kinyua further stated that the VAT decrease for the fuel products, from 16 per cent to 8 per cent, will be in place until January 14 to further cushion Kenyans from the high fuel prices.
To further cushion Kenyans, he stated that the government will continue fortifying the Petroleum Development Levy Fund to give room for stabilisation even as the international markets continue to experience a surge in fuel prices.
Warning Against Fuel Adulteration
Petrol stations have also been warned against selling adulterated fuel.
The authority explained that narrowing the price gap between kerosene and other motor fuels would discourage adulteration, instead of maintaining kerosene at an artificially low price.
“We are aware of the issue of adulteration of fuel prices, which might have a devastating impact, especially in the matatu sector. That is why we have decided to bring the price of kerosene to other motor fuels,” added Kinyua.
Dangote Refinery to Ease Pressure
On a lighter note, Kinyua touched on the Dangote Refinery under construction in Lamu, adding that once complete, it will further ease the burden of high fuel prices off the shoulders of Kenyans, and protect the country from unprecedented global shocks.
What This Means for Kenyans
The hike will increase transport costs and the cost of goods, putting further pressure on households already grappling with a high cost of living. Motorists will now pay significantly more at the pump, with kerosene users — many in low-income households — hit hardest by the Ksh28.49 increase.