Kenyans are staring at a possible upward review of fuel prices when the Energy and Petroleum Regulatory Authority (EPRA) announces new pump prices on Wednesday.
Petrol prices could increase to the highest level in the country’s history unless the government subsidises the rising crude oil costs.
For the last one month, a litre of petrol has been costing Ksh.127.14, diesel Ksh.107.66 cents while kerosene hit Ksh.97.85 cents per liter during mid-June review.
According to EPRA, the price of super petrol was influenced by a 1.5 percent increase in the average landing cost.
An upward review of the fuel prices will exert extreme pressure on Kenyans with the cost of living having shot through the roof because of high taxes on basic commodities.
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Already Kenyans are paying more for cooking gas, with a cylinder of 13 kilograms going for an average of Ksh.2,500.
This even as oil prices moved higher on Tuesday as market participants awaited data on United States Crude stockpiles.
The West Texas Intermediate for August delivery added Ksh.124 (US$.191.15) to settle at Ksh. 8,126.70 (US$.75.25) a barrel on the New York Mercantile Exchange.
Brent crude for September delivery increased Ksh. 122.036 (US$.1.33) to close at Ksh.8,249.81 (US$.76.49) a barrel on the London Ice Futures Exchange.
The U.S Energy information Administration is set to release its weekly petroleum status report on analysts surveyed by S&P global platts forecast the report to show a fall of 4.9 million barrels for the week ending July 9.