Fuel Attendant Holding a Fuel Pump
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The Energy and Petroleum Regulatory Authority (EPRA) has announced an increase in fuel prices effective January 15, 2025, responding to ongoing economic challenges in Kenya.
The new prices will see Super Petrol rise by Ksh 0.29, Diesel by Ksh 2.00, and Kerosene by Ksh 3.00 per litre, bringing the prices to Ksh 176.58 for Super Petrol, Ksh 167.06 for Diesel, and Ksh 151.39 for Kerosene. These adjustments include the 16% Value Added Tax (VAT) and excise duties, which have been modified in accordance with inflation rates.
The decision to raise prices comes in the context of fluctuating global petroleum costs. While the landed cost for imported Super Petrol decreased by 0.54% and Kerosene by 12%, Diesel experienced a slight increase of 0.06%. Despite these mixed trends, the overall economic landscape necessitated a hike in fuel prices, reflecting persistent global inflationary pressures.
According to recent data from the Central Bank of Kenya (CBK), inflation remains a concern across advanced economies, with the Euro Area witnessing an increase to 2.4% in December 2024, up from 2.2% in November. Though international oil prices have remained stable, they are not without fluctuation; for example, the price of Murban oil saw a slight rise, trading at USD 77.75 per barrel as of January 9, 2025.
The stability of the Kenyan Shilling, which was trading at KSh 129.47 per US dollar during the week ending January 9, 2025, has provided some economic respite. However, the recent fuel price increases are likely to heighten the cost of living for many Kenyans.
There is growing concern that this adjustment may exacerbate inflationary pressures, further straining households already facing financial difficulties. As Kenyans prepare for the implications of this price increase, the EPRA has committed to maintaining these rates for the next 30 days, from January 15 to February 14, 2025.