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Public outrage growing as petrol prices set to hit historic high on Wednesday

Petrol prices will from midnight Wednesday increase to highest level in Kenya’s history on rising crude oil costs in what may further stoke public outrage over the high cost of living.

A brief from the energy regulator seen by the Nation indicates that petrol will increase by Sh4.30 to Sh127.11 per litre in Nairobi while diesel is expected to rise from Sh107.66 to Sh109.96—the highest level since December 2018.

Barring last-minute changes in the monthly review, petrol prices will have increased by Sh20.12 a litre over the past three months, with diesel up Sh13.56 over the same period, one of the biggest jumps over the period in recent history.

This has sparked anger among Kenyans, with the costly fuel unleashing pricing pressure across the economy and having ramifications on the cost of living measure.

The sharp rise in fuel prices has shifted the spotlight on taxation of petroleum products, with Kenyans in border towns reportedly seeking cheaper fuel in the neighbouring countries of Tanzania and Uganda.

The Energy and Petroleum Regulatory Authority (Epra) has linked the expensive fuel to the recovery in crude oil prices. The current pump prices are based on the barrel at $61.61, up from $55.27 previously, and $65.41 for the review that kicks off midnight.

There are seven levies and two taxes that Epra takes into account when setting fuel prices, which have been blamed for the high cost of petroleum products.

Read full story on Business Daily