A last minute intervention by the National Treasury after public uproar on expected fuel prices increase forced the energy agency to retain pump prices.
A letter from the Exchequer addressed to acting Energy and Petroleum Regulatory Authority director Daniel Kiptoo indicated that the government will compensate oil marketers.
“The purpose of this letter is therefore to authorise EPRA to publish fuel prices for the period March 15 to April 14 to apply for the period April 15 to May 14,” the letter reads in part.
A litre of petrol will continue trading at Sh122.81 in Nairobi, diesel Sh107.66 and a litre of Kerosene to retail at Sh97.85 for the one month to May 14.
This, despite the landed cost of petrol increasing 9.27 per cent to $4491.50 per cubic metre compared to $449.82 in February. A cubic metre of diesel and kerosene also rose by 4.77 and 7.29 per cent respectively.
Economists had warned of tougher living conditions for households in the country already pressed by the vagaries of Covid-19 should President Uhuru Kenyatta’s regime add a dime on already skyrocketing fuel prices.
The latest report on effects of Covid-19 by the Consortium of Research on Governance reveals that 74 per cent of families in the country are currently struggling to afford basic needs.
Although there are other factors that influence the cost of living including availability of rainfall for agriculture and cost of credit, a jump in fuel prices has a spiral effect on cost of power, transport and overall production.
According to the Economic Research Institute, the cost of fuel accounts for 40 per cent of the overall Consumer Price Index.
The cost of fuel has been rising for the past three months, with a litre of super petrol, diesel, and kerosene increasing by Sh8.19 per litre, Sh5.51 per litre, and Sh5.32 per litre, respectively in February.
In January, the prices of Super petrol, diesel and kerosene increased by Sh0.17, Sh4.57 and Sh3.56 per litre respectively.