EPRA (Energy and Petroleum Regulatory Authority) has reduced the price of petrol, diesel and kerosene by KSh 1.00 per litre, reflecting a drop in the price of world crude oil for the past three months.
- In Nairobi, super petrol, diesel and kerosene will now sell at KSh 206.36, KSh 195.47 and KSh 193.23 respectively for the next 30 days. These prices are inclusive of 16% Value Added Tax(VAT).
- The average landed cost of imported super petrol decreased by 1.71% from US$ 677.78 per cubic metre in December 2023 to US$ 666.16 per cubic metre in January 2024.
- Diesel cost decreased by 3.08% from US$ 751.15 per cubic metre to US$ 728.03 per cubic metre during the period under consideration while kerosene declined by 1.17% from US$ 727.00 per cubic metre to US$ 718.51 per cubic metre.
EPRA has indicated that the price of diesel was cross-subsidised with that of Super Petrol while Kerosene was fully stabilised. “Oil Marketing Companies (OMCs) will be compensated for the under-recovery of costs from the Petroleum Development Levy (PDL) Fund,” EPRA added.
A slowdown in fuel prices at the pump takes place when the Kenya Shilling exchange rate has shown significant gain against the US$ after being on a losing streak for months.
The Central Bank of Kenya (CBK) data on Tuesday, February 13, shows that the Kenyan Shilling was trading for 158.66 units against the US Dollar compared to the KSh 160 range that it has been trading for weeks. CBK attributes this Kenya Shilling exchange rate gain against the US$ to favourable diaspora remittances and the booming tourism sector.
The February-March 2024 fuel review by EPRA is happening when the Central Organization of Trade Union (COTU) is pushing for workers to be represented on the EPRA Board.
COTU argues that there is a significant impact of electricity prices on workers and their households, hence the need for them to sit on the EPRA Board.
According to Francis Atwoli, the COTU Boss, the Union will provide invaluable insights into the social and economic implications of electricity pricing decisions.
ALSO READ: Eyes on EPRA as Global Fuel Prices Drop
