Inside Politics

Consumers outraged as petrol prices hit historic high

Wednesday, September 15th, 2021 00:00 |
Pump price. Photo/Courtesy

Kenyans expressed anger and disgust after fuel prices went up by at least Sh7. The displeasure was further aired when it was pointed out that kerosene, a commodity for majority low-income homes, had gone up by Sh12.

The increment means Super petrol will now retail at Sh134.72 in Nairobi and Sh142.57 in Marsabit, the highest in the country.

Eric Sakwa called on lobby groups to intervene and protest the changes. He said: Where are the talk shops, Kepsa and KAM to condemn. How will their members survive with the high power charges?

Erick Kimutai berated the Energy and Petroleum Regulatory Authority (EPRA) for the increase: “Who bewitched you? Explain why the same fuel in Uganda and Tanzania is cheaper than ours.”

A twitter user going by the handle SN said: ‘No way! This country sucks the life out of its citizens.”

The pain at the pump for Kenyans will be experienced for the next four week with fears that the all-time high increment is likely to push the cost of living upwards.

The common ‘mwananchi’ who is the largest consumer of kerosene was hit the hardest after Epra increased the cost of the commodity by Sh12.97 per litre.

Super Petrol and diesel also increased by Sh7.58 and Sh7.94 per litre respectively as petrol prices soared past the Sh130 mark per litre.

Key determinant 

Consumers in Nairobi will pay Sh115.60 and Sh110.82 for a litre of diesel and kerosene, respectively.

Kenyans majorly bank on kerosene and gas for lighting and cooking, which means the price of crude oil is a key determinant of the rate of inflation.

Energy and transport costs also have a significant impact on costs when weighing the basket of goods used to measure inflation.

Further, manufactured of goods are also expected to factor in the higher cost of fuel, which will have a bearing on the cost of living measure as will running of agricultural machinery have a direct knock-on effect on the cost of agriculture produce.

The new prices are inclusive of 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.

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