Diesel Subsidies Removed: Fuel Prices Surge by Up to KES 15
The Energy & Petroleum Regulatory Authority (EPRA) in Kenya has announced the new fuel prices (maximum retail costs) that will be effective from 15th May 2023 to 14th June 2023. These prices have been calculated in accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No. 192 of 2022.
In Nairobi, the maximum allowed pump prices for Super Petrol, Diesel, and Kerosene have all increased. Super Petrol will see an increase of Kshs. 3.40 per litre, Diesel will increase by Kshs. 6.40 per litre, and Kerosene will rise by Kshs. 15.19 per litre. Notably, the subsidy on Diesel and Kerosene has been removed.
These fuel prices include the 8% Value Added Tax (VAT) as per the provisions of the Finance Act 2018 and the Tax Laws (Amendment) Act 2020. Additionally, the rates for excise duty have been adjusted for inflation, in line with Legal Notice No. 194 of 2020.
The cost of imported Super Petrol has increased by 8.63% from US$666.51 per cubic metre in March 2023 to US$724.01 per cubic metre in April 2023. However, the cost of Diesel has decreased by 2.51% from US$705.82 per cubic metre to US$688.07 per cubic metre, and Kerosene has decreased by 1.13% from US$707.53 per cubic metre to US$699.54 per cubic metre.
The FOB price of Murban crude oil, lifted in April 2023, was posted at US$83.36 per barrel, reflecting a 0.88% increase from the previous month’s price of US$82.63 per barrel. Furthermore, the US Dollar to Kenya Shilling exchange rate appreciated by 0.47% during the same period.
EPRA’s Petroleum Pricing Regulations aim to ensure that the retail prices of petroleum products in the country cover importation and other costs while remaining reasonable for consumers. EPRA emphasizes its commitment to fair competition and protecting the interests of both consumers and investors in the energy and petroleum sectors.
Consumers in Kenya should be aware of these changes in petroleum prices, which will be in effect for the next month. It is advisable to plan accordingly and consider the impact on transportation and household budgets. EPRA will continue to monitor the market and make necessary adjustments to ensure fair pricing in the future.