Written By Gerald Gekara 📝
Rising crude oil costs has seen petrol prices will rise to the highest level in Kenya’s history.
Following the price review, a litre of super petrol will retail at Ksh.144.62, diesel at 125.50 and Kerosene at Ksh.113.44.
According to estimates from oil marketers, without a subsidy, fuel prices could rise by up to Sh40 per litre, bringing the cost of petrol and diesel to Sh174.72 and Sh155.60 in Nairobi, respectively.
However, the State may offer a partial subsidy, similar to what was offered last month, to help offset the rise in fuel prices.
Energy and transportation costs account for a significant portion of the basket of goods and services used to calculate inflation in Kenya.
The threat of a price hike comes as the government works to find solutions to the ongoing fuel shortage.
The fuel shortage has returned to haunt motorists, as questions about the government-backed subsidy loom ahead of the monthly review of pump prices.
Outside of Nairobi, shortages began over the weekend, with scarcity becoming apparent in the capital on Wednesday.
Oil dealers blamed the shortages on a lack of clarity about a fuel subsidy introduced by the state last April to keep prices stable amid suspicions of hoarding.