Economy

Relief as petrol prices remain unchanged in latest review


fuel

Petrol prices have been on an sharp increase since Januar 2021 . FILE PHOTO | NMG

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Summary

  • Fuel prices will remain the same in this month’s review even with rising crude oil costs, owing to a State subsidy that consumers have been enjoying over the last three months. 
  • The prices of super petrol, diesel and kerosene will remain unchanged until August 14 when the next review is due.
  • Diesel and kerosene prices have remained unchanged since April on fears an upward review could fuel public anger.

Fuel prices will remain the same in this month’s review even with rising crude oil costs, owing to a State subsidy that consumers have been enjoying over the last three months. 

The prices of super petrol, diesel and kerosene will remain unchanged until August 14 when the next review is due.

A litre of petrol will retail at Sh127.14 in Nairobi while diesel will cost Sh107.66. Kerosene, mostly used by low-income households for cooking and lighting will cost Sh97.85 at the pump. 

Diesel and kerosene prices have remained unchanged since April on fears an upward review could fuel public anger.

There were fears that fuel prices would increase to the highest level in Kenya’s history following rise in global crude prices.  
Costly crude is attributed to signs of demand growth as the global economy recovers from the Covid-19 economic fallout.

“The average landed cost of imported super petrol increased by 4.83 percent from $496.10 per cubic metre in May 2021 to $520.05 per cubic metre in June 2021; Diesel increased by 3.69 per cent from $461.95 per cubic metre to $479.01 per cubic metre. In the period under review, no kerosene vessel was discharged at the Port of Mombasa,” said Epra in a statement.

Crude prices in June soared to levels last seen three years ago, driven higher by the production cuts by the Opec nations and the mass rollout of Covid-19 vaccines in many high-income countries.

While demand for oil is still lower than normal, there are hopes of a speedier than expected economic recovery as vaccines are rolled out.

Crude oil prices plunged after a fallout between Saudi Arabia and Russia over production cuts in the wake of the Covid-19 pandemic, which has also reduced demand for energy on slow economic activities.

The prices plunged $17.64 April last year, ushering an era of cheap petrol in the months to last August.



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