Petrol prices are expected to increase in Kenya on Friday to the highest level reported in the country’s history if the government doesn’t intervene to subsidise the petrol price soon, according to Business Daily.
Reportedly, the state could meet the public halfway and offer a subsidy similar to that of the previous month which helped ease the jump in fuel prices amid a push by oil dealers.
Oil marketers estimate oil prices will increase as follows in absence of a subsidy:
- Fuel prices to increase by up to Sh40 ($0.35) a litre
- Cost of petrol to Sh174.72 ($1.51)
- Cost of diesel to Sh155.60 ($1.35)
“Without the subsidy, the prices are likely to jump by up to Sh40 ($0.35) a litre based on the cost of cargos that were shipped this month,” said a CEO of a top marketer who sought anonymity for fear of State reprisals, quoted by Business Daily.
The Kenyan government is reportedly also trying to find solutions to an ongoing fuel shortage in the country. Reports indicate that outlets just outside Nairobi, the East African country’s capital city, have started experiencing excruciating fuel shortages that have left many motorists worried and uncertain about a State-backed subsidy ahead of the monthly review of fuel prices.
The State reportedly withdrew the fuel subsidy in March imposed last year, sending diesel and petrol prices to an all-time high in the first increase since October. The adjustments, according to reports, will take effect on 15 April 2022.
By Zintle Nkohla
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