EPRA (The Energy and Petroleum Regulatory Authority) has announced lower fuel prices for the next month, bringing a huge relief to motorists and households that depend on kerosene.
- •In its latest pump price adjustment announced Thursday, March 14, EPRA cut Super Petrol prices by KSh 7.21, Diesel by KSh 5.09, and Kerosene by KSh 4.49 per litre.
- •In Nairobi, Super Petrol, Diesel, and Kerosene will now retail at KSh199.15, KSh 190.38, and KSh 188.74.
- •EPRA attributes the price cuts to a stable Kenya Shilling Exchange rate against the US dollar.
The applied exchange rate used in the latest review was KSh 148, in comparison with KSh164.42 in the previous review.
“The trade of petroleum products in the international markets is denominated in United States Dollars (USD), and an exchange rate is applied to convert the US$ to Kenya Shillings during the computation of local pump prices,” EPRA noted.
The average landed cost of imported super petrol increased by 5.60% from US$ 666.16 per cubic meter in January 2024 to US$ 703.49 in February 2024. Diesel decreased by 0.76% from US$ 728.23 in January 2024 to US$ 722.49 while kerosene increased by 1.65% from US$ 718.51 per cubic meter to US$ 730.35 per cubic meter in February.
Taxes on Fuel Products
In its last fuel review in mid-February, EPRA reduced pump prices by KShs. 1 per litre for all three products, which provided some much needed relief from recent hikes in taxes and levies on commodities.
The Finance Bill, 2023 introduced a 16 per cent VAT on petroleum products, from 8% previously, which increased fuel pump prices. In the most recent review, taxes and levies account for KShs. 77.52 of the new KShs. 199.15 pump price for petrol, KShs. 65.88 for diesel, and KShs. 60.76 for kerosene.
VAT accounts for more than a third of the taxes and levies on petrol, followed by excise duty (28%), and road maintenance levy (23%). The road maintenance levy is not applied on kerosene, but the anti-adulteration levy, which is not applicable on petrol and diesel, is applicable on Kerosene. The anti-adulteration levy is the second biggest levy at 29.6%, after VAT which accounts for 42% of the total taxes and levies on kerosene.
