For the next one month, a litre of super petrol in Nairobi will cost Sh159.12, diesel (Sh140) and kerosene (Sh127.94) after jumping to a record high in the latest monthly review on Tuesday, despite the use of a fuel subsidy.
The Energy and Petroleum Regulatory Authority said in an emailed statement.
The applicable pump prices for this cycle for Super Petrol, Diesel and Kerosene have been increased by Sh9 per litre from the immediate previous cycle. The government will utilise the Petroleum Development Fund (PDL) to cushion consumers from the otherwise high prices,” the statement read in part.
Of the Sh159.12 that Nairobi motorists will pay for fuel, the actual price is Sh184.68, meaning the government will pay Sh25.76 in subsidy. The subsidy for diesel is Sh48.19 per litre while the subsidy for kerosene is Sh42.43 per litre
The prices, the authority said, are inclusive of taxes and adjusted for inflation. In Mombasa, a litre of petrol will cost 156.86 while those in Kisumu will buy the commodity at Sh159.53, same as Eldoret. In Nakuru, a litre of super petrol will cost Sh158.64.
The authority said the price revision was partly influenced by importation costs. It said the average landing cost of the imported super petrol increased by 5.96 per cent from $826.77 per cubic metre in March to $876.05 per cubic metre in April.
This is the highest fuel has touched since Kenya began setting the price of gasoline, diesel and kerosene in December 2010.
Rising fuel prices have been a leading contributor to price growth the country in the past year, but its effect on inflation had been contained by a stabilization fund that has seen consumers pay artificially low prices.
In May, the country was rocked by a wave of fuel shortages that manifested in long queues at the fuel stations, occasioned by a standoff between large oil marketers and their small rivals over supplies.
Market inquiries revealed that large oil marketers had opted to focus on their own franchise outlets. This dealt a blow to independent oil marketers who have for years depended on the large marketers for oil.