Super Petrol will increase by Sh5.72/liter, Diesel by Sh4.48/liter, and Kerosene by Sh2.45/liter in the latest review by the government.
This means fuel will cost Sh217 per liter in Nairobi.
This is even after the state cushioned consumers from the projected increase through a stabilization mechanism to be funded by the Petroleum Development Levy (PDL) in line with the Petroleum Development Levy, Order of 2020.
Without the subsidy, a liter of super Petrol had been projected to increase by Sh8.79, diesel by Sh16.12, and Kerosene by Sh12.05.
Energy Petroleum and Regulatory Authority (EPRA) said the situation would have been worse were it not for the Government-to-Government arrangement that has resolved the USD liquidity challenges that the petroleum sub-sector was faced with prior to April 2023 when the program started.
The authority argued this has since slowed down the rate of depreciation of the shilling, with the local currency closing the week at 149.20 units against the dollar.
To date, the government has been successful in delivering 41 petroleum import cargoes under the G-to-G program and in recent times re-negotiated for the reduction of Premiums with the suppliers with the highest reduction being 30/metric ton for Diesel which has been reflected in the current pricing cycle.
“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilize pump prices for the October – November 2023 pricing cycle.
“Oil Marketing Companies (OMCs) will be compensated for the under-recovery of costs from the Petroleum Development Levy (PDL) in line with the PDL, Order of 2020,” said EPRA.
The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products that are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers, it added.
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