Petrol prices have gone up by 77 cents a litre while diesel and kerosene costs go unchanged for a third straight month, latest data on price review shows.
A litre of petrol in Nairobi is expected to shoot up to Kes 127.14, a new all time high, while diesel and kerosene costs will remain at a flat Kes 107.66 and Kes 97.85 respectively until mid July.
“The Energy and Petroleum Regulatory Authority (EPRA) has calculated the maximum retail prices of petroleum products, which will be in force from June 15, 2021, to July 14, 2021,” read the statement.
The one-sided adjustment by the Energy and Petroleum Regulatory Authority (EPRA) in fuel costs is largely attributable to the roll out of a price stabilization mechanism which has cushioned Kenyans from higher prices while axing supply margins earned by oil marketing companies.
There being no regulations to govern the fund, however, its implementation is technically illegal.
The operation of the fund, which was first disclosed in April’s fuel price review, remains opaque even as the Ministry of Petroleum says it has completed the formulation of draft guidelines.
“The prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” stated EPRA.
In Mombasa, consumers will pay Kes 124.72 per litre of super petrol, Kes 105.27 per liter of diesel and Kes 95.46 for the same volume of kerosene.
In Kisumu, a litre of super petrol, diesel, and kerosene will cost Kes 127.67, Kes 108.46 and Kes 98.68 respectively.
The new monthly prices review comes shortly after the Ministry of Petroleum appeared before the Senate Committee on Energy to explain the cause and way forward in addressing the rising prices at the pump.
Cabinet Secretary John Munyes said that while global fuel prices are not likely to ease anytime soon, the government is working on a plan to stabilize pump prices, adding that regulations to govern the operation of the stabilization fund are almost complete.
“The Ministry of Petroleum and Mining in conjunction with EPRA have finalized draft regulations to operationalize the Petroleum Consolidated Fund stipulated in the Petroleum Act 2019 and meant to cater for creation and maintenance of strategic stocks,” he said.