Kenya to Review Fuel Prices on Sunday
Motorists and businesses await the June-July fuel price announcement after last month's diesel and petrol increases. Officials had pledged relief measures following transport sector protests.
bbc.co.ukMotorists, transporters and businesses are awaiting Sunday's fuel price review after last month's increases triggered protests and prompted government pledges of relief at the pump. The June-July pricing announcement by the Energy and Petroleum Regulatory Authority will be examined for any follow-through on a pledge to lower diesel prices by a further 10 Kenyan shillings per litre.
The commitment followed negotiations with transport stakeholders that ended a threat of renewed nationwide strike action.
Diesel prices in Nairobi rose by 46.29 Kenyan shillings per litre to 242.92 shillings, while petrol increased by 16.65 shillings to 214.25 shillings. The increases prompted warnings from transport operators that higher costs would affect the movement of goods, food and passengers.
Officials cited 13.74 billion Kenyan shillings deployed through the Petroleum Development Fund and a reduction of VAT on petroleum products from 16 per cent to 8 per cent. The government stated that these measures had helped moderate the impact of global oil price volatility.
Tanzania maintained fuel subsidies estimated at about 534 Kenyan shillings per litre, while Rwanda implemented a hybrid pricing model that allowed quicker pass-through of international costs. Kenya continues to operate a largely cost-reflective pricing regime supplemented by targeted tax relief.
The Kenya National Chamber of Commerce and Industry estimated a 10 to 20 per cent rise in transport and logistics costs, with manufacturing and agricultural distribution costs potentially increasing by 5 to 12 per cent. The chamber projected consumer price increases of 3 to 7 per cent and warned that micro, small and medium-sized enterprises could see profit margins shrink by as much as 15 per cent.
