Tough times ahead as fuel prices hit historic high

Wednesday, April 14th, 2021 10:00 |
An attendant fuels a car at a petrol Station.PHOTO/COURTESY.

Kenyans will have to dig much deeper into their pockets to afford fuel after the Energy and Petroleum Regulatory Authority (EPRA) announced new petrol prices beginning Wednesday, 14 April.

For a liter of petrol, you will part with an extra Sh 4.30 to acquire the fuel that currently retails at Ksh. 127.11 and  Sh. 2.30 for diesel which goes for Sh.109.96 per litre.

Kerosene prices rose to Sh97.85 in the capital city, up from Sh92.44 in February, reflecting a Sh5.41 rise. It is expected to increase by Sh3.60.

The current prices are the highest since 2018 and the regulator has linked this surge to the slow recovery in crude oil prices. The current pump prices are based on the barrel at $61.61, up from $55.27 previously, and $65.41 for the review that kicks off midnight.

The spiral in full prices has attracted a lot of criticism and anger among Kenyans since the increase in fuel prices translates to economic pressure and a high cost of living.

This reportedly moved Kenyans residing near the border towns to seek cheaper fuel in neighboring countries of Tanzania and Uganda.

David Gikaria, chairman of the National Assembly Energy committee stated that the body he chairs will look at the two taxes which EPRA takes into account when setting fuel prices.

“We need to look at the taxes. As a committee we will propose changes to the Finance Bill for the new budget. The onus is on Parliament now to sit and look at the levies and taxes critically,” Gikaria said.

The economy also uses diesel for transportation, power generation and running of agricultural machinery such as tractors, with a direct impact on the cost of farm produce.

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