The Energy and Petroleum Regulatory Authority (EPRA) has announced higher pump prices in May, raising fears of a higher cost of living for most Kenyan households.
According to the latest data from EPRA, the pump price for Super Petrol, Diesel, and Kerosene has increased by KSh 5.50 per litre, respectively.
This increment follows a more steep hike in April 2022 that was coupled with severe shortages in most local pump stations as oil marketers haggled over compensation with the state.
EPRA assures it will shield fuel consumers
In a statement, EPRA said the Government will utilize the Petroleum Development Levy to cushion consumers from these higher fuel prices.
For instance, in Nairobi, the actual price of a litre of Super Petrol is KSh 176.47 against the recommended maximum price of KSh 150.12, meaning that oil marketers in Nairobi will receive a compensation of KSh 26.35 per litre of Super Petrol.
Likewise, while the actual price of diesel per litre is KSh 174.94 per litre, the published one is KSh 131.00, implying a compensation of KSh 43.94 for diesel sold in Nairobi.
In Nairobi, a litre of Kerosene will retail at KSh 118.94 per litre against actual price of KSh 169.26 per litre, attracting a compensation of KSh 50.32 per litre.
The Free on Board (FOB) price of murban crude oil lifted in April 2022 was quoted at US$ 93.99 per barrel, an increase of 10.43% from US$ 85.11 per barrel in March 2022.
EPRA figures show that the average landed cost of imported super petrol increased by 1.46% from US$ 814.85 per cubic metre in March 2022 to US$ 826.77 per cubic metre in April 2022.
That of Diesel increased by 6.49% from US$ 844.57 per cubic metre in March to US$ 899.36 per cubic metre in April.
Meanwhile, the landed cost of Kerosene had the most significant marginal increase of 31.13%, from US$ 692.95 per cubic metre in March 2022 to US$ 908.66 per cubic metre in April 2022.
In the March-April review period, the US $ exchange rate against the local unit rate depreciated by 0.99% from KSh114.60 in March 2022 to KSh 115.74 per US$ in April 2022.
The price of Super Petrol will now retail at KSh 147.86 per litre, that of Diesel at KSh 128.76 per litre and Kerosene at KSh 116.69 per litre in Mombasa.
This is compared to KSh 150.12 per litre, KSh 131.00 per litre and KSh 118.94 per litre of Super Petrol, Diesel and Kerosene, respectively, in Nairobi.
In Nanyuki, the recommended maximum pump prices for Super Petrol, Diesel and Kerosene per litre will be KSh 152.05, KSh 132.94 and KSh 120.87, respectively. In Muranga, Super Petrol, Diesel and Kerosene will retail at KSh 150.64, KSh 131.52 and KSh 119.46 per litre, respectively.
The new maximum retail prices, released by EPRA, will be in force from 15th May 2022 to 14th June 2022 and include 8% Value Added Tax(VAT) and revised Excise Duty, adjusted for inflation as per legal notice No. 194 of 2020.
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