The retail price of super petrol has marginally gone down, while that of diesel and kerosene went up.
In the latest price capping guide by the Energy Regulatory Commission (ERC), the changes in pump prices are reflective of the cost of imported products into the country.
The average cost of imported super petrol went down by about two per cent last month compared to August.
The average landed cost of diesel went up by 2.11 per cent, while kerosene increased by 0.6 per cent.
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This will see petrol retail at Sh115.73 per litre in Nairobi.
Diesel will go for Sh109.72 while kerosene will retail at Sh108.84.
“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: super petrol decreases by Sh1.06 while diesel and kerosene increase by Sh1.60 and Sh0.43 per litre respectively,” said ERC in a statement.
“The prices are inclusive of the value-added tax (VAT) at eight per cent in line with the provisions of the Finance Act 2018.”
Petroleum products
It is the second pump price review since Parliament amended the VAT levied on petroleum products to eight per cent.
Local pump prices could further go up in the coming months as the cost of crude oil hits a four-year high in the recent weeks at over Sh8,400.
There are projections that this will go up to reach Sh10,000 before the end of this year.
The rise in new fuel prices follows signing into law President Uhuru Kenyatta’s eight per cent VAT on fuel after those opposed to the levy in Parliament failed to raise the requisite quorum.
The President’s memorandum was to be overturned by a vote supported by not less than 233 MPs.
Treasury plans to raise Sh17.5 billion from the new tax on petroleum products and Sh9.8 billion from the “kerosene adulteration” tax.
