The Kenyan government has attributed the rise in pump fuel prices to volatility in the global oil market driven by the ongoing conflict in the Middle East.
Fuel prices surged on Friday, with motorists in Nairobi now paying Ksh.214.25 per litre for Super Petrol and Ksh.242.92 for Diesel after the Energy and Petroleum Regulatory Authority (EPRA) increased prices by Ksh.16.65 and Ksh.46.29 respectively, while Kerosene remained unchanged at Ksh.152.78 per litre.
The hike has triggered public concern, with sections of Kenyans worried that the increase has come at the wrong time, as families are already struggling with high taxes and the rising cost of basic commodities.
However, in a statement issued on Friday, Energy Cabinet Secretary Opiyo Wandayi addressed public concerns, noting that geopolitical tensions have disrupted global energy supply chains and increased the cost of importing petroleum products.
According to Wandayi, Kenya, as a net importer of petroleum products, remains exposed to external market shocks, including rising crude oil prices, elevated freight charges, and uncertainty in global supply.
“Consequently, the prices of Super Petrol and Diesel have been adjusted in line with prevailing global market conditions, exchange rate pressures, and increased supply chain costs,” the ministry said.
Wandayi explained that the average landed cost of imported Super Petrol rose from USD 823.27 per metric tonne in March to USD 906.23 in April, representing a 10 per cent increase.
Diesel recorded the highest jump, increasing by 20.32 per cent from USD 1,073.82 per metric tonne to USD 1,291.98 over the same period.
Kerosene increased marginally by 1.59 per cent, from USD 1,311.93 per metric tonne to USD 1,332.73.
However, the government said it had maintained Kerosene prices at current levels to cushion vulnerable households that rely on the commodity for domestic use.
The government further noted that insurance premiums had increased significantly due to tensions around the Strait of Hormuz, further compounding global petroleum import costs.
According to the ministry, Kenya continues to benefit from fixed freight and premium costs negotiated under the government-to-government (G-to-G) arrangement for refined petroleum imports.
To ease the impact of rising global fuel prices, the government said it had utilised the Petroleum Development Levy (PDL) stabilisation mechanism, applying approximately Ksh.5 billion to cushion Diesel and Kerosene prices during the current review cycle.
The ministry also defended the government-to-government fuel importation framework, saying it had shielded Kenya from surging global freight and premium charges.
“Currently, global spot freight and premium rates for petroleum cargoes have more than doubled, exposing countries reliant on spot purchases to very high escalations in landed costs,” the statement read.
The ministry assured Kenyans that the country currently has adequate fuel stocks and that the government is closely monitoring developments in the international oil market.
It added that consultations are ongoing with stakeholders in the transport, manufacturing, energy, and business sectors to identify measures aimed at reducing the impact of rising fuel prices on consumers.
“The Government remains steadfast in its commitment to delivering reliable, accessible, and affordable energy in support of economic growth, job creation, and improved livelihoods for all Kenyans,” said Wandayi.
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