Petrol users in Kenya are being charged an extra Sh. 9.94 per litre to keep diesel prices low.
The extra charge means that petrol users would now be paying Sh. 167.36 per litre in Nairobi.
Without the subsidy, the costs of a litre of diesel in Nairobi would have retailed at Sh. 180.82 from the current Sh. 162 while a litre of petrol would have dropped to Sh. 167.36 from the current Sh. 177.3 a litre.
The high charges follow the government’s decision to subsidize diesel at Sh. 18.79 per litre, with petrol users paying half of this subsidy.
Petrol is however no longer subsidised, which now means that the continued charging of the Sh. 5 per litre Petroleum Development Levy is an additional charge on petrol users.
The additional charges also mean that petrol users are paying Sh. 73.23 per litre as taxes and levies.
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“The cross-subsidy is in line with government policy aimed at ensuring minimal impact to the economy since diesel is a major economic driver that contributes to inflation,” Daniel Kiptoo, the director-general of the Energy and Petroleum Regulatory Authority (Epra) said.
In the previous month, petrol landed at the Mombasa port at Sh. 87.90 a litre and diesel at Sh. 112.11. Kerosene, which is used in many households for cooking and lighting, landed at Sh. 100.28 a litre.
