EPRA To Announce New Fuel Prices Today, Any Surprises?

The Energy Petroleum and Regulatory Authority (EPRA) is set to announce new fuel prices today. Politicians led by PM Raila Odinga had promised a drop in prices in the new announcement. Should Kenyans have hope today? We say no.

During the review in September, a liter of Super Petrol was increased by 7.58 shillings. That of Diesel went up by 7.94 shillings while Kerosene increased by 12.97 shillings. This was the first major hike in three months that got Kenyans by surprise.

Currently, residents in Mombasa are paying 132.46 shillings per liter of Super Petrol, 113.36 shillings for Diesel, and 108.57 shillings for Kerosene.

Nairobi, residents are parting with 134.72 shillings for Super Petrol, 115.60 shillings for Diesel, and 110.82 shillings for Kerosene. Will Kenyans get any reprieve today?

There are two things that are likely to happen in today’s fuel price announcement; the current fuel prices will be retained (hence still high for Kenyans) or will be increased again to an all-time high. It is not clear whether the subsidy will be reintroduced.

Globally, the price of crude oil has gone up. There is no way Kenyans are going to enjoy low fuel prices without the intervention of the government.

The price of US crude jumped 5 percent last week. For context, crude rarely exceeded $75 per barrel this year. However, on Friday, it briefly traded above $80, before ultimately settling at $79.31. That was the highest daily settlement since October 2014.

Read More: Tough Times Ahead As Fuel Prices Skyrocket, Time For Kenyans To Mourn

This morning, a section of the Kenyan media is reporting that government officials are at crossroads on how to either maintain or reduce the fuel prices to avoid facing the wrath of Kenyans. The only option is for the government to reintroduce the subsidies.