Kenyans angry over fuel price hikes

Kenyans are expressing their anger over fuel price hikes announced on Sunday in the latest adjustment by the energy regulator.

The price of fuel in the country is determined by a government authority, which sets the maximum prices of each type of fuel.

In computing the retail price, the Energy and Petroleum Regulatory Authority (Epra) includes factors such as in the landed cost of the fuel (the cost when it is shipped into the country), the distributors and marketers’ profit margins and a number of taxes.

At the current cost of 122.81 shillings ($1.2; £0.8) per litre of petrol in Nairobi, the landed cost is 49.84 shillings, with most of the other costs (57.33 shillings) taken up by taxes and other levies.

Some Kenyans are criticising the government for the high amount of taxes:

High fuel costs contribute to a higher cost of living in the country, as the economy relies largely on diesel for power generation and transport.

A politician has used the rise in fuel prices to rally against the amendment of the constitution in an upcoming referendum expected later this year.

“Taxes are a major component of fuel prices. With BBi proposing an expanded parliament comprised of about 600 members,taxes will rise,and fuel prices rise further.China,a country of 1.4B, has 2000 MPs.Kenya will have 600 Mps,a country of 45M.”

Source: BBC