Kenyans could be hit with higher fuel prices from next week as a sharp rise in global oil prices puts fresh pressure on the country’s monthly pump-price review.
The timing could not be worse for motorists.
The current fuel prices expire on September 14, with the Energy and Petroleum Regulatory Authority (EPRA) expected to announce the new prices before they take effect on September 15.
And this month’s review is happening against a very different global oil market.
Brent crude has climbed above the equivalent of KSh13,500 per barrel, with prices remaining elevated as concerns over global oil supplies continue to grow.
Diesel is emerging as a particular concern.
Supply of refined petroleum products has been squeezed by disruptions in the Gulf, with international diesel prices also coming under pressure.
Then came another blow.
Saudi Arabia shut its East-West oil pipeline on Saturday following a drone attack, adding to concerns about how much crude can reach the international market.
For Kenya, higher international oil prices could translate into higher costs at the pump when EPRA announces the September prices.
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The impact could go beyond motorists.
A jump in diesel prices would put pressure on matatu operators, trucks, businesses and the cost of transporting goods across the country. Higher transport costs could eventually be felt in the prices consumers pay for everyday products.
But there is no confirmed increase yet.
EPRA has not announced the September 15 prices, and the final figures will depend on the regulator’s calculations and other factors affecting Kenya’s fuel-pricing formula.
For now, Kenyans are waiting for one number:
How much will a litre of fuel cost from September 15?
If global oil prices remain at these levels, motorists could be in for an unpleasant surprise.
