Kenya: Pain at the Pump for Motorists as Petrol Price Goes Up Again

14 August 2018

The price of super petrol has gone up by Sh1.53 in the latest review announced by the Energy Regulatory Commission (ERC) on Tuesday. At the same time, the prices of diesel and kerosene have gone down slightly.

Following the latest adjustments, a litre of petrol will retail at Sh113.73 in Nairobi.

A litre of diesel will now retail at Sh102.74 in Nairobi while that of kerosene will retail at Sh84.95.

While announcing the new fuel prices which will be in effect from August 15, 2018 to September 14, 2018, ERC said the changes are as a result of the average landed cost of Super petrol increasing by 3.08 percent per ton.


At the same time, ERC said, the average monthly exchange rate of the US dollar to the Kenyan shilling rose by 0.41 percent, which has an effect on imported fuel prices.

The petrol price increase comes even as motorists in Nairobi are expected to pay a record Sh130.15 per litre beginning September when petroleum products start attracting 16 percent value added tax.

Treasury Principal Secretary Kamau Thugge last week confirmed that petroleum products will start attracting the tax on September 1 in line with Kenya's promise to the International Monetary Fund two years ago.


The increase in fuel prices will not be limited to Nairobi but will be felt countrywide beginning September 1.

Following this expected increase, the Matatu Owners (MOA) has said they will increase fares charged on passengers immediately the government implements the 16 per cent tax levy on petroleum products.

MOA Chairman Simon Kimutai said fares in Nairobi will increase by between Sh10 and Sh30, depending on the route and distance travelled.

At the same time, the Consumer Federation of Kenya (Cofek) has urged the government to shelve the planned introduction of 16 percent VAT on fuel, saying this new tax will lead to a spike in the cost of living, affecting low income consumers the most.

"By dint of this proposed measure, the cost of travelling, transport of goods, food and general inflation will radically rise," said Cofek Secretary-General Stephen Mutoro in a statement.

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