Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-02-25 12:57:00
Motorists across Kenya may soon be facing an increase in fuel prices as the Energy and Petroleum Regulatory Authority (EPRA) gears up for a review. This potential hike is a result of a rise in global fuel prices, as highlighted by the Central Bank of Kenya (CBK) in its recent weekly review. The CBK reported that prices surged in the week ending February 22, just after the monthly fuel review took place. The increase was primarily attributed to disruptions caused by attacks in the Red Sea region.
According to the CBK bulletin, the Murban oil price climbed to USD 82.76 per barrel on February 22, up from USD 80.79 per barrel on February 15. This upward trend in international fuel prices has had a ripple effect on the cost of the commodity locally, regionally, and globally. In the months of November and December 2023, a substantial increase in global oil prices was noted at USD 93.92 and USD 91 per barrel, respectively.
During 2023, there were questions raised by Kenyans regarding the discrepancy between global fuel price decreases in months like May and July and the local prices, with petrol selling at Ksh182.70 and Ksh194.68, respectively. The Institute of Economic Affairs (IEA) explained that Kenya imports refined oil rather than crude oil, which partly explains why global fluctuations do not directly affect the Kenyan market. Additionally, the country’s taxes play a significant role in determining fuel prices.
The Ministry of Energy recently raised the Petroleum Regulatory Levy from Ksh0.25 to Ksh0.75 per liter, adding to a total of nine taxes and levies imposed on fuel. These include the Road Maintenance Levy, Petroleum Development Levy, Railway Development Levy, Anti-Adulteration Levy, Merchant Shipping Levy, Import Declaration Fee, and Value Added Tax (VAT). Furthermore, the exchange rate of the US dollar also impacts fuel prices in Kenya.
In the latest update, motorists in Nairobi are paying Ksh206.36, Ksh195.47, and Ksh193.23 for petrol, diesel, and kerosene, respectively, following a Ksh1 reduction in fuel prices for February. The next EPRA review is scheduled for March 14, raising speculations and concerns among consumers. EPRA Director General Daniel Kiptoo highlighted the importance of transparency in the energy and petroleum sector during the release of the Energy and Petroleum Statistics Report on December 15, 2023.
As global fuel prices continue to fluctuate, Kenyan motorists should brace themselves for a possible increase in prices at the pump. The interconnected nature of the oil market, coupled with factors such as taxes and exchange rates, create a complex landscape that affects fuel prices locally and across the globe. Stay tuned for the EPRA’s upcoming review, which will shed more light on the future of fuel prices in Kenya.
Read the original article on Kenyans.co.ke
