The Energy and Petroleum Regulatory Authority (EPRA) announced on Tuesday, March 14th its new fuel prices to take effect for the next month. Super petrol prices are set to rise by Ksh 2 per litre, making it Ksh 179.3 per litre in Nairobi, while diesel and kerosene prices remain unchanged, at Ksh 162 and Ksh 145.95 per litre respectively. Unsurprisingly, this announcement caused a slight disturbance in the market as consumers looked to adjust their spending habits accordingly.
Photo courtesy of a Petrol pump
The new fuel prices set by the EPRA are likely to have various impacts on different stakeholders: consumers, suppliers, and the state. For consumers, the price increase of super petrol is likely to see their purchasing power go down amidst the price-versus-income constraints. Additionally, transport costs are likely to increase, expensive goods may become slightly more expensive, and the cost of living may go up.
Photo courtesy of a fuel attendant
On the other hand, suppliers are likely to benefit from the higher profit margins associated with the increase in prices. The state, on the other hand, is likely to see an increase in revenue from the taxation of the increased prices, which can then be used for public development programs or other government activities.
Photo courtesy of netizens comments
The new fuel prices are likely to have an impact on the overall economy as well, as it can affect the production and supply of goods across various sectors. In addition, the increase in fuel prices may result in an increase in inflation as prices of certain commodities may rise.
Photo courtesy of the Source
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Furthermore, the rise in prices may cause consumers to decrease their spending in order to compensate, resulting in a decrease in demand and hence an overall economic slowdown.
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