Kenyan motorists could face higher fuel prices as global crude oil costs continue to rise ahead of the Energy and Petroleum Regulatory Authority's (EPRA) next fuel price review on September 14.
The anticipated increase follows a sharp rise in the price of Brent crude, the global benchmark used to determine petroleum product prices, which has climbed to around Ksh12,900 (USD100) per barrel.
The latest increase marks the first time Brent crude has reached the USD100 level since July and represents a significant jump from approximately Ksh9,065 (USD70) per barrel recorded just weeks earlier.
Kenya imports a substantial portion of its petroleum products from Middle Eastern suppliers, meaning any increase in global crude prices can eventually be reflected in local pump prices.
Similar pressure is being experienced in other parts of the world. Motoring organisations, including the Royal Automobile Club (RAC) in the United Kingdom, have reported rising fuel costs, with the price of unleaded petrol increasing by Ksh9 per litre within a week.
The increase pushed the price of unleaded petrol to Ksh346, representing the biggest weekly rise recorded since April. Diesel prices also climbed by Ksh9 to Ksh330 per litre.
For Kenyan motorists, such developments in the global market could translate into higher landing costs for imported petroleum products, a key factor considered by EPRA when determining monthly fuel prices.
Currently, a litre of Super Petrol in Nairobi is retailing at Ksh214.03, while Diesel costs Ksh217.86 and Kerosene sells at Ksh191.38.
However, these prices could change in the upcoming review, given the rapid increase in crude oil prices on the international market in recent weeks.
If the upward trend in global oil prices persists until September 14, Kenyans could face another increase in the prices of Super Petrol, Diesel and Kerosene, adding further pressure on already strained household budgets.
The possible rise comes despite several measures introduced by the government to cushion consumers against high fuel prices, including reducing Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent.
Other interventions include using the Petroleum Development Fund to stabilise pump prices, lowering the cost of diesel and kerosene, and maintaining government-to-government (G2G) oil import arrangements to protect the country from supply disruptions.
Despite these interventions, the government has continued to link the recent pressure on fuel prices to the ongoing conflict in the Middle East, which has disrupted oil flows through the Strait of Hormuz, a critical global shipping route through which about 21 per cent of the world's oil supplies pass.
