Kenyan Government Helpless Against Soaring Fuel Prices

The Kenyan government, through its Energy Cabinet Secretary Davis Chirchir, has expressed its inability to control the rising fuel costs due to increased international landing costs for the commodity. Appearing before the National Assembly‚Äôs Energy committee, Chirchir said that these external factors are forcing the government to adjust domestic fuel prices accordingly. He emphasized that since Kenya does not produce its own fuel, it’s bound by international market dynamics and agreements with suppliers.

This comes after Trade Cabinet Secretary Moses Kuria intimated that the situation might worsen. Kuria indicated that Kenyans should brace for a monthly increase of Ksh 10 in fuel prices until February of the next year, attributing this trend to the global surge in crude oil prices. He made this revelation on his X app account, which hints at the continuing upward pressure on global crude prices.

Kenyans, who are already grappling with elevated fuel prices, find this news concerning. Recent revisions by the Energy and Petroleum Regulatory Authority (EPRA) have seen fuel prices increase considerably. In their recent announcement, the EPRA mentioned that petrol prices rose by Sh16.96, resulting in a new retail price of Sh211.64 per liter in Nairobi. Similarly, diesel and kerosene increased to Sh200.99 and Sh202.61 per liter respectively.

EPRA attributed these hikes to the growing landed costs of imported fuels. Specifically, the landed cost of Super Petrol saw a 4.80% increase from US$739.21 to US$774.67 per cubic metre from July to August 2023. Over the same period, diesel’s cost surged by 12.52% and kerosene’s by 19.79%. The situation reflects the challenging dynamics of global oil prices and their direct impact on consumer pockets in Kenya.

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