The Energy & Petroleum Regulatory Authority (EPRA) has announced a further reduction in fuel prices by KES 5 per litre. This marks the second consecutive reduction, following a similar decrease announced on December 14th, 2023. The new prices, reflecting a drop in the cost of Super Petrol, Diesel, and Kerosene, will be effective from January 15th to February 14th, 2024.
Despite the trend of falling global fuel prices, Kenya has been grappling with persistently high fuel costs, placing a considerable financial strain on its population. The latest price cap by EPRA is part of the regulatory body’s efforts to ensure that the benefits of lower international oil prices are passed on to Kenyan consumers. The prices are inclusive of a 16% Value Added Tax, as well as adjustments in line with the Finance Act 2023 and other legislative amendments affecting the sector.
EPRA’s statement detailed a decrease in the average landed costs of imported fuel. Super Petrol’s costs dipped by 2.40%, Diesel by a significant 9.06%, and Kerosene by 4.33%, as per the latest data comparing November and December 2023 figures. These changes, the authority says, are a result of the international pricing benchmarks provided by S&P Global Platts, with the authority ensuring that the local pump prices reflect these downward trends.
In its communication, EPRA reiterated its commitment to fair competition and the protection of consumers and investors within the energy and petroleum sectors. The authority stressed that the purpose of the Petroleum Pricing Regulations is to cap retail prices for products already within the country, ensuring reasonable costs for consumers while recovering importation and other prudently incurred expenses. This price reduction is a welcome relief for Kenyans, who have been facing high fuel costs despite a global decline in prices.