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On Saturday, December 14, the Energy and Petroleum Regulatory Authority (EPRA) announced a reduction in the prices of Super Petrol, Kerosene, and Diesel in its latest fuel price review.
According to the regulator, the maximum allowed pump prices for Super Petrol, Diesel, and Kerosene were reduced by Ksh4.37, Ksh3, and Ksh3 per litre, respectively.
Following the announcement, the new prices were set at Ksh176.29 for Super Petrol, Ksh165.06 for Diesel, and Ksh148.39 for Kerosene.
EPRA clarified that these prices, which include the 16% Value Added Tax (VAT) as per the Finance Act 2023 and the Tax Laws (Amendment) Act 2020, will be in effect for 30 days, from December 15, 2024, to January 14, 2025.
The regulator also noted a 4.46% drop in the average landed cost of imported Super Petrol, which decreased from Ksh82,721 per cubic meter in October to Ksh79,029 per cubic meter in November. On the other hand, the landed cost of imported Diesel rose by 5.76%, from Ksh78,524 per cubic meter to Ksh83,050 per cubic meter, while the cost of Kerosene went up by 1.87%, from Ksh83,625 to Ksh85,193 per cubic meter.
EPRA explained that the regulations governing petroleum pricing aim to set a cap on local retail prices, ensuring that importation and other costs are covered while maintaining fair prices for consumers.
As Kenya imports all of its petroleum products in refined form, the regulator pointed out that global market pricing benchmarks are used, and the trade is priced in U.S. Dollars. Exchange rates are then applied when converting to Kenyan Shillings to determine the local pump prices.
This price reduction brings relief to many Kenyans, who had anticipated higher fuel costs due to rising global oil prices driven by geopolitical tensions in the Middle East and the ongoing Russia-Ukraine conflict.
