The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in the prices of petrol, diesel, and kerosene by Sh1 per liter, effective from February 15th, 2024. This move comes as a result of a decline in the average landed cost of imported petroleum products, according to EPRA’s statement.
EPRA clarified that the new prices, inclusive of the 16 per cent Value Added Tax (VAT), align with the provisions of various legislative acts, including the Finance Act 2023 and the Tax Laws (Amendment) Act 2020. These adjustments also consider the revised rates for excise duty, as outlined in Legal Notice No. 194 of 2020.
In Nairobi, the new retail prices are set at Sh206.36 for petrol, Sh195.47 for diesel, and Sh193.23 for kerosene. In Mombasa, petrol will retail at Sh203.3, diesel at Sh192.41, and kerosene at Sh190.05.
In other regions, such as Chuka, Embu, and Meru, similar adjustments in fuel prices have been implemented to reflect the nationwide reduction.
In Chuka, super petrol will retail at Sh208.11, while diesel at Sh197.22, and kerosene Sh198.98. In Embu, super petrol will retail at Sh207.55 , diesel at Sh196.66, and kerosene at Sh194.41. In Meru, super petrol prices are expected at Sh209.68, while diesel will retail at Sh198.79 and kerosene at Sh196.55.
The authority highlighted that under Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, it has computed the maximum retail prices of petroleum products for the period from February 15th, 2024, to March 14th, 2024.
EPRA attributed the price decrease to a reduction in the average landed cost of imported Super Petrol, Diesel, and Kerosene. Specifically, the landed cost of Super Petrol decreased by 1.71 per cent, Diesel by 3.08 per cent, and Kerosene by 1.17 per cent, prompting the adjustment in retail prices.
Moreover, EPRA mentioned that Diesel prices have been cross-subsidized with those of Super Petrol, while Kerosene prices have been fully stabilized to mitigate fluctuations in the market.
Oil Marketing Companies (OMCs) will receive compensation for any under-recovery of costs through the Petroleum Development Levy (PDL) Fund, according to EPRA’s statement.
EPRA emphasized that the Petroleum Pricing Regulations aim to cap retail prices of petroleum products to recover importation and other incurred costs prudently, while ensuring reasonable prices for consumers.
