Government subsidises fuel to keep pump prices flat

Government subsidises fuel to keep pump prices flat

BY JOAN WANJIKU,NAIROBI,14TH AUG,2022-The Energy and Petroleum Regulatory Authority has kept pump prices unchanged for the next one month in its latest review Sunday.

According to EPRA, for the next one month, the price of super petrol, diesel and kerosene will retail at Ksh 159.12, Ksh140.00 and Ksh127.94 per litre respectively in Nairobi.

“The Government will utilise the Petroleum Development Levy (PDL) to cushion consumers from the otherwise high prices. A litre of super petrol has been subsidised by Ksh 54.91, diesel by Ksh 66.17 and kerosene by Ksh 74.17,” said Daniel Bargoria.

In Mombasa, a litre of super petrol, kerosene and diesel will retail at Ksh 156.56, Ksh 137.76 and Ksh 125.69 respectively.

EPRA says the average landed cost of super petrol increased by 2.99pc from $1042.85 per cubic metre in June to $1074.01 in July.

On the other hand, the average cost of diesel was quoted at $1003.03 per cubic metre in July from $1019.29 in June, an increase of 8.22pc.

During the period under review, the average landed cost for kerosene went up by 14.9pc between June and July to reach $1111.53 from $967.42.

Since late last year, the government has been forced to tap the Petroleum Development Levy to cushion consumer from rising global crude oil prices amid weak shilling.

Analysis by EPRA indicate that the Kenya shilling depreciated by 1.17pc, from Ksh 118.53 per dollars in June to Ksh 119.92 per US dollar.

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