Fuel Prices Likely To Increase by Ksh.47 If Subsidy Is Not Issued

If the fuel subsidy is not issued, petrol prices are expected to go up by 47 shillings to hit the highest levels in Kenya’s history.

The Energy and Petroleum Regulatory Authority (EPRA) is expected to announce the maximum prices applicable for the April-May cycle today, 14^th April 2022, with the prices projected to go up following last month’s rally in the cost of crude oil.

According to oil marketers’ estimates, an increase in fuel prices by 40 shillings might push diesel to shit 162 shillings while super petrol to hit 181 shillings per liter in Nairobi without the subsidy.

The government could otherwise opt to partially subsidize the oil marketers, similar to last month, to ease the jump in prices and the crisis that has stretched over the past three weeks.

The energy regulator’s monthly review increased diesel and petrol prices by 5 shillings to 115.60 and 134.72 shillings, respectively.

Without the subsidy, a liter of petrol would be retailing at 155.11 shillings. However, a 20.39 shillings subsidy has cushioned Kenyans with petrol retailing at 134.72 shillings per liter in Nairobi.

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The fuel shortage crisis has caused a lot of confusion around the country, with major activities such as farming and running of day-to-day businesses activities coming to a halt.

From long queues to a limited amount of fuel at high costs and lack of fuel ins some stations, Kenyans have been frustrated and disappointed.

The oil dealers have linked the shortage to a lack of clarity on the fuel subsidy that the State introduced in April 2021 to stabilize prices amid suspicion of hoarding.

They also claim that the delay in payment of the subsidy has pushed up prices in the wholesale market, where they sell the commodity to the small independent retailers that control 40 percent of the market.