The Energy and Petroleum Regulatory Authority (Epra) on Tuesday, June 14 increased pump prices by Ksh9 per litre driving the cost of super petrol and diesel to Ksh159.12 and Ksh140 respectively in Nairobi.
The prices are the highest in Kenya’s history. The monthly price review is expected to push a further increase in the price of basic goods and services, including food.
The increase in fuel prices comes at a time when the inflation rate in Kenya in May 2022 hit 7.1%, up from 6.5% the previous month. It was the highest reading since February 2020 and a pointer to the skyrocketing cost of living.
“The applicable pump prices for super petrol, diesel and kerosene have been increased by Sh9 per litre from the immediate previous cycle,” Epra confirmed in a public notice.
Prices of basic food commodities have been on the rise, partly affected by the situation in Ukraine. Grains, cooking oil and milk are among commodities whose prices have risen sharply in recent weeks.
Farmers, service providers and farmers are likely to pass on the increased cost of fuel to their customers. The increase came despite the billions put into the stabilisation fund in a bid to cushion Kenyans from the high fuel prices.
The latest review means that petrol prices have risen by Ksh24 per litre in just three months.
The increase comes amid a sharp increase in the global cost of crude. The average landed cost of crude crossed the $100 per barrel mark for the first time.
Epra noted that the average cost of crude, that was used to set the latest pump prices, stood at $112.48 (Ksh13,147.70) up from $93.99 (Ksh10,878. 40).
A weakening Shilling also contributed to the increase. The Shilling has been hitting record lows against the dollar on a near-daily basis for the past month.