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BY NAMULONGO PETER,NAIROBI,14TH JULY,2020– Motorists will have to dig deeper into their pockets to afford the cost of fuel after the energy and petroleum Regulatory Authority revised the prices of Petrol and diesel upwards in its monthly review.Customers will pay an extra Ksh.11.38 for a liter of petrol and Ksh.17.30 for a litter of diesel respectively.
The Energy and Petroleum Regulatory Authority (EPRA) has attributed the rise in pump prices to an increase in the landed cost of fuel imports which has also seen kerosene costs rise by Ksh.2.98.
“The changes in this months prices are as a result of the average landed cost of imported super petrol increasing by 12.64 percentin June and diesel increasing by 32.16 percent,” noted EPRA in a statement Tuesday.
No Kerosene was imported during the month maintaining the cool down on kerosene costs in the review but for an adjustment under the recovery of value added tax (VAT) by oil marketers in the cycle.
A litre of petrol in Nairobi is now back north of Ksh.100 and will retail at Ksh.100.48 from Wednesday while costs to diesel and kerosene will rise to Ksh.91.87 a litre and Ksh.65.45 respectively.
The rise in global oil prices is indicative of the continued recovery of crude prices as the demand for oil returns from a lift to Covid-19 restrictions across the globe.
The recovery market by oil producing and exporting countries represented by the extended Organization of Petroleum Exporting Countries (OPEC +) which recently instituted production cuts of nearly 10 million barrels a day to manage world prices.
The cost of Murban crude, from which Kenya imports fuel from its refinement has for instance doubled over the last three months to trade at Ksh.4668.41 ($43.63) per barrel on Monday in comparison to Ksh,2214.90 ($20.70) on April 16.
The resurgence in oil costs is expected to impact not just motorists, as the Central Bank of Kenya (CBK) will now face up to higher forex exchange demand from greater monthly oil import bills.
The change in fuel costs is further expected to impact on the average Kenyan as it triggers a rise in consumer prices- a pick up in the inflation rate.
June inflation had cooled down to 4.59 percent from 5.33 percent in May supported in part by a relief to diesel and kerosene costs.
The new pump prices will take effect midnight Wednesday and will last through to August 14.