Holiday travel cost to rise as fuel prices go up
- The development is likely to witness a rise in transport costs dampening the festive period that experiences increased activities as Kenyans transit from their workplaces to their rural homes.
- The price increase which takes effect at midnight and will remain in force until December 14 midnight.
Kenyans traveling during the festive season will spend more at the pump after the Energy and Petroleum Regulatory Authority (Epra) increased fuel prices.
In a statement signed by Epra director general Pavel Oimeke on Thursday, a litre of petrol in Nairobi will now cost Sh110.59, an increase of Sh2.54, while a litre of diesel has risen by Sh2.65 to retail at Sh104.61.
Households that use kerosene are the hardest hit, in the latest review, that will see users part with Sh2.98 more for a litre that will cost Sh104.06.
The development is likely to witness a rise in transport costs dampening the festive period that experiences increased activities as Kenyans transit from their workplaces to their rural homes.
Kenya's inflation increased to 5.7 percent in the month of September from 4.04 percent the previous month due to increased taxes on petroleum products.
The rate is the highest in 12 months, an indication that the impact of VAT on fuel is sieving into the economy.
The price increase, which takes effect on Thursday midnight and will remain in force until December 14 midnight, is attributed to an increase in the landing cost for super petrol by 0.86 percent from Sh4,593 per cubic metre last September to Sh4,632 per cubic metre last month, while that of diesel increased by 2.08 percent from Sh4,919 per cubic metre to Sh4,999 per cubic metre.
Kerosene also had a 2.73 percent increase from Sh4,866 to Sh4,999, while the currency exchange rate rose by 0.23 percent from Sh103.79 to Sh103.55 percent last October.
“The prices are inclusive of an eight percent Value Added Tax (VAT) while the computation has factored the revised Import Declaration Fee of 3.5 percent and the Railway Development Levy of two percent. The revised pipeline tariffs has resulted in a Sh0.50 per litre saving in the overall price,’ said the statement.