Fuel prices have shot up on the back of a spike in international prices of crude oil and refined products over the last month following Russia’s invasion of Ukraine.
The Energy and Petroleum Regulatory (Epra) on Monday said a litre of super petrol will retail at Sh134.72 in Nairobi up from Sh129.72 while diesel has increased to Sh115.60 from Sh110.60 per litre.
“The average landed cost of imported super petrol increased by 13.34 percent from $596.79 per cubic metre in January 2022 to $676.40 per cubic metre in February 2022,” EPRA said in a statement.
“Diesel increased by 11.74 percent from $606.16 per cubic metre to $677.31 per cubic metre while kerosene increased by 15.94 percent from $534.38 per cubic metre to $619.57 per cubic metre.”
Global oil prices broke past $100 after all-out war between Russia and Ukraine followed by Western sanctions which have restricted the purchase of Russian oil by some marketers.
The rise in global crude prices has crippled Kenya’s fuel subsidy that has kept pump prices unchanged for four months in a row. The war has pushed crude oil prices to a 14-year high.
To keep the prices unchanged, Treasury requires at least Sh10 billion for this month and another Sh15 billion in April to compensate oil marketers.
Demand for oil has outpaced production growth as economies rebound from the Covid 19 pandemic, leaving the market with a small buffer to mitigate an oil supply shock.
Russia is the world’s third-largest oil producer, and the war in Ukraine has cut the flow of Russian barrels to market.
Higher energy prices risks inflation through costly transport, electricity, and other manufactured goods.
