Warnings of costly shipments in the coming months and depletion of the subsidy kitty mean there is a risk that diesel prices could breach the Sh300-a-litre mark, ushering in pain for businesses and households in the form of record inflation.
Government officials and oil marketers anticipate that local pump prices will continue to rise as the energy crisis in the Middle East drags on and due to reduced cash in the Petroleum Development Levy fund.
On Thursday, the energy regulator increased its retail fuel prices by up to 23.5 per cent, bringing the price of diesel to Sh242.92 per litre — an increase of Sh24.2 per cent since last month — amid squeezed global crude supplies and high energy prices caused by the conflict in the Middle East.
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