Petrol prices will rise to their highest point in Kenya's history from midnight if the government fails to implement a subsidy programme.
It is estimated that petrol prices will rise by Ksh 3 a litre pushing the price of the basic commodity to Ksh 130 in the capital Nairobi.
Diesel will rise by Ksh 2.50 and kerosene by Ksh 3.50 a litre.
A petrol pump/ Photo Courtesy
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This will put a bigger dent in Kenyans' pockets as they grapple with the rising costs of living.
The government has however subsidised the price of diesel by Ksh 7.28 and kerosene by Ksh 13.22 over the past three months with the programme lapsing at the stroke of midnight Wednesday, July 14th.
Petrol was subsidised by Ksh 4.40 a litre over a one month period in April this year.
The price increase has been attributed to an increased demand for crude oil as the global economy recovers from the effects of COVID19.
The effect of a fuel price increase will increase pressure on Kenyans with inflation hitting a 16 month high of 6.32% in June 2021.
The cost of energy will see a similar rise as electricity providers factor in the cost of fuel.
Transport costs will also increase with logistics providers cushioning themselves from loss and leading to a further increase in the price of manufactured goods.
