Fuel prices on Tuesday shoot significantly in 13 folds, indicating the highest increase since 2010 when the country started regulating fuel prices at the pump.
The price of Super Petrol, Diesel and Kerosene increased by Ksh11.38, Ksh17.30 and Ksh2.98 per litre respectively, effective July 15.
Super Petrol which has been retailing at Ksh89.1 will now Ksh100.48 in Nairobi, Diesel at Ksh91.87 and Kerosene at Ksh65.45.
In Mombasa, the prices will be relatively lower at Ksh98.11 for Super Petrol, Ksh89.50 for Diesel and Ksh63.09 for Kerosene.
This is according to new prices released by the Energy and Petroleum Regulatory Authority (EPRA).
“The prices are inclusive of the revised rates for Petroleum Development Levy on Super Petrol and Diesel as per Legal Notice No. 124 of 10th July 2020 and 8% VAT in line with the provisions of the Finance Act 2018 and Tax Laws (Amendment ) Act 2020.” Said EPRA.
The levy was introduced on July 10 through a gazette notice and will see the government close to Ksh2 billion every month from fuel consumers.
On March 10, Crude oil prices plunged by more than a quarter after a fallout between Saudi Arabia and Russia to cut production in the wake of coronavirus, a move which promised Kenyans cheaper petrol and electricity.
With the world airlines that consume about five million barrels a month grounded, the buyers had nowhere to stock their products, leading to a near market collapse.
Kenya imports its oil products from Saudi Arabia and the United Arab Emirates, who are reeling from the current market tumble.
In May, the prices of petrol and diesel dropped by Sh18 and Ksh4.09 per litre respectively, to retail at Ksh92.87 and Ksh91.37 in Nairobi, down from Ksh110.87 and Ksh95.46 respectively.
Kerosene recorded the biggest margin drop by Ksh18.18 to Ksh77.28 a litre in the city, according to the latest monthly prices set by EPRA.
Petroleum products in Kenya are sourced through an open tendering system where all the oil firms have an opportunity to source the product.
The current fuel prices will stay in force from July 15 to August 14, 2020.