The Energy and Petroleum Regulatory Authority (EPRA) on Saturday, December 14, reduced the prices of Super Petrol, Kerosene, and Diesel in its latest fuel review.
In its announcement, the regulator announced that the maximum allowed petroleum pump prices for Super Petrol, Diesel, and Kerosene decreased by Ksh4.37 per litre, Ksh3 per litre, and Ksh3 per litre respectively. Our analysis shows this is the lowest pump price in nearly two years.
Following the communiqué, the prices of Super Petrol, Diesel, and Kerosene have been set at Ksh176.29, Diesel at Ksh165.06, and Kerosene at Ksh148.39 respectively.
EPRA noted that the calculated maximum retail prices for petroleum products would be in force for the next 30 days from Sunday, December 15 to January 14, 2025.
EPRA DG Daniel Kiptoo speaking during a stakeholders forum on February 5, 2024.
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EPRA
According to the energy regulator, the prices are inclusive of the 16 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty.
Further, EPRA announced that the average landed cost of imported Super Petrol decreased by 4.46 per cent from Ksh82,721 per cubic metre in October to Ksh79,029 per cubic metre in November.
Additionally, the average landed cost of imported diesel increased by 5.76 per cent from Ksh78,524 per cubic metre to Ksh83,050 per cubic metre while kerosene increased by 1.87 per cent from Ksh83,625 per cubic metre to Ksh85,193 per cubic metre over the same period.
EPRA explained that the purpose of the petroleum pricing regulations was to cap the retail prices of petroleum products that are already in the country so that importation and other incurred costs are recovered while ensuring reasonable prices to consumers.
“Currently, Kenya imports all its petroleum product requirements in refined form, and the products are traded in international markets based on a pricing benchmark,” EPRA announced.
“Further, the trade of petroleum products in the international markets is denominated in United States dollars, and an exchange rate is applied to convert the dollars to shillings during the computation of local pump prices.”
The announcement comes as a relief for many Kenyans who expected a surge in petroleum prices following the increase in global oil prices due to the geopolitical tensions in the Middle East and the Russia-Ukraine war.
The Central Bank of Kenya (CBK), in its weekly bulletin published on Friday, December 13, stated that international oil prices increased during the week ending December 11. According to CBK, the price of Murban oil increased to $73.30 on December 11, 2024, from $71.86 on December 5.
A person fueling a vehicle.
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Kenyan wallstreet
