Motorists to Dig Deeper in their Pockets as Petrol & Diesel Prices Raised By Ksh.5

The review comes five months after the last hike in petroleum prices last September as the petrol price stabilization mechanism fails to hold ground this time.

Nevertheless, the government has still partly utilized the stabilization mechanism to hold off further increases in fuel prices after the average cost of imported super petrol rose by 13.34 percent while diesel imports were up by 11.74 percent.

A liter of super petrol will now cost Ksh.134.72 in the Capital of Nairobi while diesel will cost Ksh.115.60 per liter.

Users of kerosene have been spared from the recent hike with the price of the commodity holding unchanged on the full cover of the price stabilization mechanism leaving a liter of the product in the Capital at Ksh.103.54 despite a 15.9 percent jump in import costs.

Without the partial use of the subsidy, Kenyans would have paid an average of Ksh.155.11 per liter for petrol, Ksh.143.16 for diesel, and Ksh.130.44 for kerosene.

Despite the rising global crude prices, the free-on-board price (FOB) of Murban crude fell by 9.4 percent to $74.36 per barrel or Ksh.8492 last month from $82.03 in January.

A combination of unmatched demand by oil-producing and exporting countries and supply constraints from the fall out of Russia’s invasion of Ukraine has this month pushed crude prices beyond the $100/barrel (Ksh.11420) ceiling setting the stage for further oil prices hikes in coming months

The rise in fuel costs is expected to heighten the cost of living, reversing the latest disinflation trend which saw consumer prices ease in both January and February.