Fuel prices tend to vary from time to time and due to the ongoing fuel shortage problem, fuel prices have increased drastically. The fuel prices today in Kenya 2022 have increased by ksh.5 meaning that diesel now goes for ($0.043) ksh.115.60 and petrol on the other hand goes for ($1.16) ksh.134.72.
According to last month’s review, these are the highest prices recorded in Kenya. If the subsidy was not in place, the price of diesel per litre would retail and cost ($1.23) ksh.143.16 and the price of petrol per litre would increase I cost to ($1.34) ksh.155.11.
Fuel crisis in Kenya
Fuel shortage has been felt all over the country, with many citizens uncertain over the subsidy placed by the state, as fuel prices have drastically increased to solve the problem.
Counties outside Nairobi started experiencing fuel shortage problems as the weekend approached, while in Nairobi, fuel shortage was experienced as from Monday.
Oil dealers blame the subsidy placed by the state back in April and termed it as lacking clarity by the state in an attempt to stabilise fuel prices.
Kenya fuel prices
Government delay payment of subsidies
Oil prices in the market drastically increased due to the Government delaying paying subsidies to the companies. This in turn causes oil sellers to sell the fuel to small retailers, that actively contribute to 40% of the market. The small retailers however seem not that desperate to buy the costly fuel from the local oil majors that have recently increased.
The local oil majors, on the other hand, have been extremely cautious as to whether or not to increase fuel supply and if the state would decide to compensate them back for the fuel, not in use. The fuel prices adjustments are to occur on April 15th and they would be in place for about a month.
The Government back in March withdrew the subsidy, increasing the prices of petrol and diesel to an all-time high in October. Oil marketers, on the other hand, have increased the amount of fuel they are selling to our neighbouring countries I.e. Uganda, DR Congo and Rwanda from 40% to 60% of the overall imports to make a profit.
The Government owes oil companies ksh13 billion. On April 4th, the Government spent ksh8.2 billion to pay oil dealers that claimed the Government owed them over Ksh.20 billion.
Fuel shortage in Kenya
On Monday, almost all of the filling stations along the Kisumu-Nairobi highway were not open and the few that were still operating in town were filled by long queues of motorists. Various cargo transporters and bus companies have not been in business after fuel shortages were experienced, hence some people are stuck in the rural areas.
It has also become quite difficult for the private motorists to get enough oil as the dealers have hiked oil prices due to a lot of demand and regulated the fuel amount sold to each motorist. Some of the filling stations have breached the rules set by (EPRA) Energy and Petroleum Regulatory Authority by selling petrol per litre surpassing Ksh.200.
Fuel prices today in Kenya 2022 frequently asked questions
According to April monthly review, diesel prices have increased to ksh.115.6 per litre.
According to the April monthly review, petrol prices have drastically increased to ksh.134.72 per litre.
The average gas price from November 2021 to February 2022 was Ksh.113.6
Fuel prices in Kenya are included in 8% VAT as per the Finance Act Provision 2018 and the Tax Amendment Law Act 2020.
The average price of Kerosene per litre in Kenya is Ksh. 100.6, although kerosene prices tend to vary from one place to another.