Petrol, kerosene prices rise to historical highs as state withdraws subsidies
Kenya has reached record-high fuel prices following the government's decision to withdraw all petroleum subsidies. The Energy and Petroleum Regulatory Authority cited global market pressures and the depletion of the Petroleum Development Levy Fund as primary reasons for the hike.
Why it matters
Rising fuel costs are expected to exacerbate inflation and increase the cost of living for low-income households in Kenya.
The cost of super petrol has risen to an all-time high, with a litre of petrol set to retail at Sh226.96 in Nairobi. In the prices for next one month announced yesterday, petrol went up by Sh12.93 per litre. The cost of kerosene too rose to a historical high of Sh219.85 following a sharp increase of Sh28.49 per litre, further burdening low-income households that use the fuel for lighting and cooking. The cost of diesel went up by Sh9.90 a litre to Sh227.76. The Energy and Petroleum Regulatory Authority (Epra) attributed the higher prices to the continued crisis in the Middle East that resulted in higher costs of imported petroleum products. The energy sector regulator has also withdrawn subsidies across all petroleum products, noting that the kitty had dried up following heavy withdrawals to cushion fuel prices since April.
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