Devastating Fuel Price Hike: Kenyans Brace for Pain in 2023

The increase in fuel prices is expected to have a significant impact on the economy and has been met with criticism from businesses and consumers.

The Fuel: Energy and Petroleum Regulatory Authority (EPRA) has increased fuel prices by Sh13.49 per litre effective midnight, July 1, 2023.

The new prices mean that a litre of petrol will retail at Sh195.53 in Nairobi, up from Sh182.04. Diesel will retail at Sh179.67 per litre, up from Sh166.18. Kerosene will retail at Sh147.44 per litre, up from Sh133.95.

The increase is the highest in Kenya’s history and is attributed to the rising cost of crude oil in the international market. The price of Brent crude oil, which is the benchmark for Kenya, has increased by more than 50% since the beginning of the year.

The increase in fuel prices is expected to have a significant impact on the economy, as it will make it more expensive to transport goods and services. It is also likely to lead to inflation, as businesses pass on the higher costs to consumers.

The government has said that it is working to mitigate the impact of the fuel price increase, but it is unclear what measures it will take.

The EPRA has also announced that it will be introducing a new fuel pricing formula from July 1, 2023. The new formula will be based on the average price of crude oil in the international market over the past 12 months.

The government says that the new formula will be more transparent and will help to stabilize fuel prices in the long term.

The increase in fuel prices has been met with criticism from businesses and consumers. The Kenya Association of Manufacturers has said that the increase will lead to job losses and higher prices for consumers. The Consumer Federation of Kenya has also said that the increase is unfair and will hurt the poor and vulnerable.

The government has defended the increase, saying that it is necessary to ensure the sustainability of the petroleum industry. The government has also said that it is working to provide relief to consumers through subsidies and other measures.