Home General More pain at the pump as super petrol price rises by Sh2, diesel, kerosene remain unchanged

More pain at the pump as super petrol price rises by Sh2, diesel, kerosene remain unchanged

by kenya-tribune

Kenyans will have to dig deeper into their pockets as the price of super petrol was revised upwards by Sh2 yesterday evening while that of diesel and kerosene remain unchanged in the latest review by the Energy and Petroleum Regulatory Authority (Epra).

This comes even as impoverished Kenyans decry the high cost of living and continuously weaking shilling against the US Dollar.

Effective last midnight, the cost of a litre of super petrol will retail at Sh179.30, diesel (Sh162) and kerosene (Sh145.94) in Nairobi.

According to Epra, the price of diesel has been cross-subsidised with that of Super Petrol while a subsidy of Sh23.49 per litre has been maintained for kerosene in order to cushion consumers from high prices.

The government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost.

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 last month’s review, the cost of a litre of petrol retailed at Sh177.3 per litre, diesel Sh162 and kerosene Sh145.94 in Nairobi.

Energy and Petroleum Cabinet Secretary Davies Chirchir said on Monday that the government signed a deal last week with Saudi Aramco to supply Kenya with diesel and super for the next six months, while Abu Dhabi National Oil Company (Adnoc) will deliver three cargoes of super petrol every month.

Saudi Aramco is the world’s biggest oil producer and it recently bought US motor oil and lubricants group Valvoline, giving it a local presence locally in Kenya.

The third player selected by the government to participate in the fuel import deal that technically shelves the current open tender system hailed for bringing transparency in the oil business in Kenya is the Emirates National Oil Company Group (Enoc).

Principal Secretary for Petroleum Mohamed Liban says in a letter to oil marketers that Kenya needs an extra 85,000 metric tonnes of diesel, 60,000 metric tonnes of super and 40,000 metric tonnes of jet fuel this month.

The request for extra imports comes amid a government-to-government deal with United Arabs Emirates where Kenya is hoping to import fuel on a credit of 180 days to ease pressure on the forex.

Petroleum imports account for nearly a third of Kenya’s imports bill every month.

You may also like