A Liter of Super Petrol Will Now Cost You 179 Shillings In Nairobi

More pain for Kenyans as fuel prices hit a new all-time high following the new administration’s policy plan to gradually scrap off the fuel subsidy.

As of Thursday 15, 2022, Kenyans will buy a liter of petrol at 179.30 shillings ad 176 shillings in Nairobi and Mombasa respectively This is an increase of 20 shillings per liter from the last review on August 14 when the commodity cost 159.12 shillings.

Meanwhile, a liter of diesel will now run at 165 shillings from 140 shillings, while a liter of kerosene will retail at 147. 94 shillings up from 127.94 in August 2022 in Nairobi.

Fuel subsidies have been partially retained for diesel and kerosene at 20.82 and 26.25 shillings respectively, according to the Energy and Petroleum Regulatory Authority (EPRA).

The prices include the 8 percent Value Added tax in line with the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty for inflation as per Legal Notice No.194 of 2020.

The latest price hike is the largest since the implementation of the fuel subsidy program in the March 15-April 14 pricing cycle in 2021.

The price increase is primarily attributed to the increase in the average landed cost of refined imported petroleum products, and is in line with the new government’s policy to progressively remove the subsidy on petroleum fuels.

On Tuesday 13, 2022, President William Ruto said that both the fuel and food subsidies that were used by the previous administration to cushion Kenyans against harsh commodity prices are unsustainable for both consumers and the government’s fiscal operations.

According to President, the fuel subsidies have taken up to 144 billion shillings of taxpayers’ funds including the 60 billion shillings owed to the oil marketers as of August 2022, and thus must be ended.

In the last pricing cycle to September 14, the subsidy covered margins of 54.91 shillings on petrol, 66.17 shillings for diesel, and 74.17 shillings for kerosene.

The pressure will hit Kenyans who are already struggling with the inflated cost of living as manufacturers and transporters pass the surging fuel cost to consumers.

Farmers are among the many whose activities might be disrupted since they will be forced to dig deep into their pockets to cover the costs of getting their goods to the market.

Adding to the drought and the continuous increase of basic commodities in the country, we could be headed for more brutal days ahead, far from the economic freedom that was promised.

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