Petrol, kerosene and diesel prices are set to increase this January. This follows a review by the Energy and Petroleum Regulatory Authority (EPRA).
According to the report, petrol prices will go up by Ksh. 0.70. Diesel prices will increase by Ksh. 0.54 and kerosene will experience a Ksh. 1.64 increase. These increments are on per liter basis.
“The prices are inclusive of 8% Value Added Tax (VAT) in line with provisions of the Finance Act 2018,” EPPRA released in a statement on Tuesday 14/01/2020.
However, these changes are set to take effect from 15th January to 14th February 2020 across the country.
The month’s fuel price changes are as a result of an increment in the costs of importing kerosene, petrol, and diesel to Kenya.
An increase in fuel prices will reflect in fare prices hiking and commuters being forced to pay more. Food prices will also increase as the transportation prices increase with the increase in fuel.
There is a possibility that this increase in fuel prices may lead to inflation as the cost of living is set to rise.
The situation may be accelerated by the recent excessive rains which have spoiled farm produce.
Produce rotting include ripe maize and irish potatoes ready for harvesting.
This crippled with the increase in fuel poses a major threat to the economy.