Good News for Motorists as EPRA Reduces Fuel Prices
The Energy Petroleum Regulatory Authority (EPRA) has given some respite to motorists in Kenya by providing a list of low prices that are to be implemented in the country for the month of December in its latest roller coaster.
Price Adjustments
Effective at midnight, the pump prices for Super Petrol, Diesel, and Kerosene have been reduced as follows:
Super Petrol: Reduced by; Ksh. 4.37 per litre.
Diesel: Reduction by Ksh.3.00 per litre.
Kerosene: Reduce for Ksh.3.00 per litre.
The new prices in major cities include:
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Nairobi: Super Petrol – Ksh.176.29, Diesel – Ksh.165.06 and Kerosene – Ksh. 148.39.
Mombasa: Super Petrol at Ksh, 173.05, Diesel at Ksh 161.82 and Kerosene at Ksh 145.15.
These prices are in line with the 16% Value Added Tax (VAT) policy in the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and Legal Notice No. 194 of 2020 adjustments to inflationary excise duties.
Reasons for the Drop
EPRA attributed the price reduction to a decline in the landed costs of imported petroleum products:
Super Petrol: This is quite a drop from the US$ 641.14 recorded per cubic metre in October to US$ 612.53 in November, 4.46% decline.
However, for Diesel and Kerosene products, the landed cost experienced a slightly higher increase thus Diesel by 5.76% and Kerosene by 1.87%.
Context and Impact
This is the second time that the prices of fuel have been reduced in a row – good news for consumers after months of having to pay steep fuel prices. Lower fuel prices should impact the rest of the commodity cycle and I believe it would impact transport costs thereby decreasing the inflation rate on goods and services.
Still, EPRA’s review corroborates such tendencies and proves the virgin intention to adhere to fair pricing strategy which corresponds to the international fuel costs and local taxes.