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No relief in sight: CS Moses Kuria says fuel prices will keep soaring

Judd Mutua by Judd Mutua
September 15, 2023
in News
Reading Time: 2 mins read
12 Jan 2015, Nantong, Jiangsu Province, China --- A Chinese worker holds an oil nozzle at a gas station in Nantong city, east China's Jiangsu province, 12 January 2015. China's crude oil imports rose above 7 million barrels per day for the first time in December, reaching record levels as plunging international prices allowed the world's largest importer to fill strategic and commercial reserves. International crude prices are near six-year lows, revisiting levels last seen in the wake of the global financial crisis. While price controls over transport fuels limit the boost to the Chinese economy, the drop has presented an unusual opportunity for China to increase reserves of crude oil at relatively little cost. China imported 7.15 million bpd in December, bringing its full-year crude imports to a record 308 million tonnes up nearly 10 per cent on the year. Some of that additional demand reflects economic growth --- Image by © Imaginechina/Corbis

12 Jan 2015, Nantong, Jiangsu Province, China --- A Chinese worker holds an oil nozzle at a gas station in Nantong city, east China's Jiangsu province, 12 January 2015. China's crude oil imports rose above 7 million barrels per day for the first time in December, reaching record levels as plunging international prices allowed the world's largest importer to fill strategic and commercial reserves. International crude prices are near six-year lows, revisiting levels last seen in the wake of the global financial crisis. While price controls over transport fuels limit the boost to the Chinese economy, the drop has presented an unusual opportunity for China to increase reserves of crude oil at relatively little cost. China imported 7.15 million bpd in December, bringing its full-year crude imports to a record 308 million tonnes up nearly 10 per cent on the year. Some of that additional demand reflects economic growth --- Image by © Imaginechina/Corbis

Trade Cabinet Secretary Moses Kuria warned Friday that Kenyans should brace for higher fuel prices until February amid a global spike in crude costs.

Kuria said in a tweet that pump prices could rise by KES 10 per liter monthly after the Energy and Petroleum Regulatory Authority hiked costs overnight to record levels. Super gasoline jumped KES 16.96 per liter while diesel and kerosene rose KES 21.32 and KES 33.13 respectively.

“Global crude prices are on an upward trajectory for planning purposes expect pump prices to go up by KES 10 every month till February,” he explained in a tweet.

The increase triggered public backlash as Kenyans grapple with painfully high fuel expenses.

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Kenyans are reeling from unprecedented fuel prices crossing the KES 200 per liter threshold for the first time. Petrol now costs KES 211.64 per liter, diesel KES 200.90 and kerosene KES 202.61 after the latest increase.

The price hikes come amid growing public frustration over surging inflation and taxes in Kenya’s strained economy. Many citizens vented outrage on Twitter following the fuel review, with some lamenting their inability to cope with the continuously rising costs.

Read more: TIFA: Confidence in government goes up despite continued economic doubt

“We thank God we are still breathing, welcome to the Republic of Taxmenistan,” one upset user replied.

Fuel prices have been on the rise since President Ruto came to power. One of his first acts as president was to scrap the government’s popular yet costly fuel subsidy. The removal of the subsidy left Kenya’s market vulnerable to shocks from the global crude oil market.

With no plans to reinstate the subsidy program, citizens should expect to feel more pain at the pump in the coming months.

Email your news TIPS to editor@thesharpdaily.com

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Judd Mutua

Judd Mutua

Judd Mutua is a journalist with wide ranging interests ranging from the world of finance to the latest in tech and business news. Off duty you can find him reading his favorite books and manga. Send tips via jmutua@thesharpdaily.com

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