December 15, 2020//-Petroleum prices rose marginally this month based on November global price and motorists face higher pump prices in January following a recent rally in crude prices.
Petrol has increased by Sh0.97 higher per litre toSh106.82 in Nairobi while diesel and kerosene are up Sh1.12 and Sh1.93 respectively to retail at Sh91.82 and 83.56 for the month to January 14.
Oil prices increased to the highest since March to hit the $50.36 per barrel on Friday buoyed by hopes that more countries will soon roll out a coronavirus vaccine, accelerating economic growth and travel that will fuel demand for fuel.
This looks set to put pressure on pump prices in January when the energy regulator will review fuel prices.
But motorists are on course to enjoy a State subsidy on fuel after global crude cost rose above $50 per barrel, a level that allows diesel users to get rebates from the government.
The Ministry of Energy reckons that Kenyans will not bear costs of diesel prices above $50 a barrel in a subsidy scheme that excludes petrol.
The subsidy will be supported by billions of shillings raised from fuel consumers through the Petroleum Development Levy, which was increased to Sh5.40 a litre in July from Sh0.40 or a 1,250 per cent rise. The subsidy is meant to cushion consumers from volatility in fuel prices.
