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In the February 14 fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), Kenyans received a mixed bag of news.
While the spotlight in many reports has been on the slight decrease in fuel prices by Sh1 per litre across diesel, super petrol, and kerosene, a crucial detail has emerged that could have a significant impact on consumers.
According to the latest price breakdown by EPRA, the Petroleum Regulatory Levy has been increased by three times, from Sh0.25 to Sh0.75 per litre.
The levy is part of the various components that make up the pump price of fuel. The decrease in fuel prices has been welcomed by many, as it offers a slight relief amidst the economic challenges faced by Kenyans.
However, the increase in the Petroleum Regulatory Levy may offset these benefits, raising concerns about the overall affordability of fuel.
The decision to increase the levy comes at a time when Kenyans are grappling with the rising cost of living.
Fuel prices have a ripple effect on the economy, influencing the cost of transport, goods, and services.
As such, any changes in the fuel pricing mechanism are closely watched by consumers, businesses, and policymakers alike.
According to the latest price review, levies and taxes constituted Sh78.76, Sh67.06, and Sh61.78 per litre of super petrol, diesel, and kerosene respectively.
READ: Top 10 African countries with the cheapest fuel prices at the start of 2024
Distribution and storage costs constituted Sh4.08, Sh3.77, and Sh3.73 per litre of super petrol, diesel, and kerosene respectively.
Oil marketing companies will collect Sh12.39, Sh3, and Sh9.8 per litre of super petrol, diesel, and kerosene respectively.
During this period, the government will subsidize the cost of super petrol at Sh0.96 per litre.
This brings the applicable retail prices in Nairobi to Sh206.36, Sh195.47, and Sh193.23 per litre.