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The Energy & Petroleum Regulatory Authority (EPRA) has announced revised maximum retail prices for petroleum products in Kenya, effective from January 15 to February 14, 2024.
The latest adjustments, detailed in a press release by EPRA Director General Daniel Kiptoo come after the government decided to cross-subsidise fuel to ensure stability and reasonable costs for consumers.
“The price of diesel has been cross-subsidized with that of super petrol. Oil Marketing Companies (OMCs) will be compensated for the under-recovery of costs from the Petroleum Development Levy (PDL) Fund.
“The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers,” the director general revealed.
The price of Super Petrol has been reduced by Sh5 per litre, diesel by Sh5 per litre, and Kerosene by Sh4.82 per litre.
The new prices in Nairobi are Super Sh207.36, diesel Sh196.47 and kerosene Sh194.23.
EPRA's calculations are based on the average landed cost of imported Super Petrol, which decreased by 2.40%, from US$694.44 per cubic meter in November 2023 to US$677.78 per cubic meter in December 2023.
Diesel experienced a more significant decrease of 9.06%, moving from US$826.01 per cubic meter to US$751.15 per cubic meter, while Kerosene decreased by 4.33% from US$759.93 per cubic meter to US$727.00 per cubic meter.
READ: EPRA report reveals how Kenya's fuel consumption dropped after VAT hike
The international trade of petroleum products, dominated by the exchange in United States Dollars (USD), is a key factor in determining local pump prices.
The exchange rate is applied during the computation to convert USD to Kenyan Shillings (Sh).
As consumers digest the news of the price adjustments, EPRA assures the public of its continued dedication to fairness in competition and the protection of consumer and investor interests.
The government's move to cross-subsidize Diesel and strategically adjust fuel prices points to a proactive approach to balancing the economic impact on consumers while navigating the complexities of the global energy landscape.
As the new prices come into effect, consumers and industry stakeholders will be closely monitoring the market dynamics, anticipating a positive impact on their wallets amid prevailing economic challenges.