Record-breaking fuel prices in Kenya

Record-breaking Fuel Prices In Kenya

The retail price of a liter of petrol in Kenya has reached an unprecedented level of over 200 Kenyan shillings (R25.94).

  • Fuel prices have surged to record highs following an adjustment by the Energy and Petroleum Regulatory Authority.
  • Kenyan citizens are now facing additional pressure as the cost of living continues to rise.
  • The decrease in oil production by major oil-producing countries has contributed to the price increase.

The cost of fuel in Kenya has hit a record high, exacerbating the economic hardships faced by millions of people after the energy regulator revised pump prices.

The announcement made by the Energy and Petroleum Regulatory Authority has resulted in the retail price of a liter of petrol reaching an unprecedented level of over 200 Kenyan shillings (R25.94).

Kenyans are currently grappling with a severe cost of living crisis, experiencing rising prices for essential goods, alongside numerous new taxes, and a weakening national currency.

Under the new price regime, which came into effect on Friday and will remain until October 14th, the price of a liter of petrol in Nairobi has increased by nearly 17 shillings to 211.64 shillings (R2.20), while diesel will cost 200.99 shillings (R26.07) and kerosene 202.61 shillings (R26.28).

Energy Minister Davis Chirchir partly blamed the surge in global crude prices, reaching 10-month highs, on the reduction in oil output by Saudi Arabia and Russia earlier this month.

“There is not much we can do… the burden is heavy, and it will not be easy,” he informed the energy committee of parliament.

Pump prices have been on the rise due to the removal of subsidies in compliance with demands from the International Monetary Fund, as well as the doubling of VAT on fuel products outlined in the unpopular Finance Act signed into law in June.

The Finance Act includes numerous new and increased taxes, which the government contends are necessary to enhance public finances and alleviate the national debt burden.

A legal challenge to the Finance Act has been brought forth by several petitioners, with a Nairobi court expected to make a ruling in November on its constitutionality.

According to media reports, the government is considering further tax increases, including raising VAT and implementing duties targeting farmers and car owners, among others, as detailed in a treasury strategy review up until 2026/27.

Many Kenyans have accused President William Ruto of breaking a series of promises made during last year’s election campaign, in which he pledged to improve the lives of ordinary people.

Despite inflation in Kenya declining to 6.7 percent in August, petrol prices have risen by 22 percent in the past year, electricity costs have surged by nearly 50 percent, and essential groceries such as sugar and beans have increased by 61 percent and 30 percent respectively.

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