NAIROBI,Kenya-The latest increase in fuel prices across Kenya is a direct result of rising global crude oil prices, Energy and Petroleum Regulatory Authority (EPRA) Director General Daniel Kiptoo has said.
Kiptoo explained that the cargo priced in the current cycle was imported in June, when international prices had significantly risen compared to May.
“The spike we saw in May and June in international prices has led to the prices which we published on Monday,” he said.
“The May prices for super petrol were $671.79 per barrel, while June cargo was priced at $716.94 a $45.15 increase, or 6.72 percent. Diesel moved from $563.84 to $616.47, a $52.63 increase, representing a 9.33 percent rise.These increases in global prices are the reason we have seen an increase in pump prices on Monday.”
As of this week, super petrol now costs Sh8.99 more per litre, while diesel and kerosene have risen by Sh8.67 and Sh9.65, respectively.
The adjustments have sparked public outcry and political criticism, with Kiharu MP Ndindi Nyoro alleging that the government had used the Road Maintenance Levy as collateral to secure “illegal” debt, without parliamentary approval.
In response, Transport Cabinet Secretary Davis Chirchir clarified that the government had used a legal financing method known as securitization to raise Sh175 billion.
According to Chirchir,funds were channeled through a Special Purpose Vehicle (SPV) and used to clear pending bills for over 580 stalled road projects.
Sh7 from every litre of the Sh25-per-litre Road Maintenance Levy goes toward servicing this debt.
Energy CS Opiyo Wandayi has also dismissed claims that the price hike was linked to the securitization, attributing it solely to international market forces.
