EPRA: Fuel Prices Shoot Up
EPRA announced on Wednesday, September 14.
The Energy and Petroleum Regulatory Authority (EPRA) has increased the prices of fuel for the period between September 15 to October 14.
The price of Super Petrol went up by Ksh20 to Ksh179.30 per litre, Diesel increased by Ksh25 to Ksh165 while Kerosene increased by Ksh20 to Ksh147.94 in Nairobi.
EPRA announced late at night, a few minutes to midnight Wednesday, September 14, after what was believed to have been a delay caused by a standoff between key stakeholders.
Fuel price update for between September 15, 2022 and October 14, 2022. /VIRALTEAKE
"In accordance with Section 101(y) of the Petroleum Act 2019, Legal Notice No.196 of 2010 and Legal Notice No. 26 of 2012, the Energy & Petroleum Regulatory Authority has calculated the maximum retail prices of petroleum products for the period September 15 to October 14, 2022," EPRA stated.
"Taking into account the weighted average cost of imported refined petroleum products and in line with government policy to progressively remove subsidy on petroleum fuels, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by Ksh 20.18 per litre, Ksh 25 per litre and Ksh 20 per litre respectively."
In Mombasa, a litre of petrol, diesel and kerosene will go for Ksh176.98, Ksh162.76 and Ksh145.69 respectively.
Eldoret, Petrol, Diesel and Kerosene will trade at Ksh179.50, Ksh165.72 and Ksh148.67.
Some parts of the country will buy Petrol at a record high, between Ksh180 and Ksh192. These areas include Lamu, Laisamis, Meru, Mtito Andei, Elwak, Mandera, Kericho, Kisii, Nyamira, Homa Bay, Migori, Busia and Kimilili.
According to EPRA, 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 as per Legal Notice No. 194 of 2020.
During his speech on Tuesday, September 13 after he was sworn in as Kenya's fifth Head of State, President William Ruto planned to end the fuel subsidy, arguing that taxpayers have spent a total of Ksh144 billion, a whooping Ksh 60 billion in the last 4 months.
"If the subsidy continues to the end of the financial year, it will cost the taxpayer Ksh280 billion, equivalent to the entire national government development budget," he stated.
In his speech, however, he did not mention an intervention plan to save Kenyans from the high cost of living which would potentially be made worse in the event fuel prices went up after the removal of the subsidy.
Ruto's move raised questions amongst Kenyans and in particular, motorists who consume the product ahead of the fuel price announcement.
Following his announcement, some filling stations started rationing the product and others experienced shortages. Long queues were experienced in some parts of the country, triggering panic buying ahead of the review.
In addition, Kenya Pipeline Corporation (KPC) had warned that there would be a hike in fuel prices due to the failure by the exchequer to remit funds owned to oil marketers as well as the marketers going slow on picking the product at the Kipevu Oil Storage Facility and other storage areas, thus causing a shortage.
President William Ruto reading his speech at Kasarani Stadium after being sworn in as Kenya's fifth president on September 13, 2022. /WILLIAM RUTO