This archive report was first published on 14 July 2020.
Published on July 14, 2020, motorists in Kenya are set to face higher fuel costs as the landed cost of imported fuel has increased.
The Energy and Petroleum Regulatory Authority (EPRA) has announced a rise in pump prices, with petrol costs increasing by Ksh 11.38 and diesel costs rising by Ksh 17.30.
According to EPRA, the average landed cost of imported super petrol increased by 12.64 percent in June, while diesel costs rose by 32.16 percent.
As a result, a litre of petrol in Nairobi will now retail at Ksh 100.48 from Wednesday, while diesel and kerosene costs will rise to Ksh 91.87 a litre and Ksh 65.45 respectively.
The rise in global oil prices is indicative of the continued recovery of crude prices as the demand for oil returns from a lift to Covid-19 restrictions across the globe.
The Organization of Petroleum Exporting Countries (OPEC +) has recently instituted production cuts of nearly 10 million barrels a day to manage world prices.
The cost of Murban crude, from which Kenya imports fuel, has doubled over the last three months to trade at Ksh 4668.41 ($43.63) per barrel on Monday.
The resurgence in oil costs is expected to impact not just motorists, but also the Central Bank of Kenya (CBK) as it faces higher forex exchange demand from greater monthly oil import bills.
The change in fuel costs is further expected to impact on the average Kenyan as it triggers a rise in consumer prices, leading to a pick up in the inflation rate.
