EPRA Announces Fuel Prices For November-December

The Energy and Regulatory Authority (EPRA) on Thursday, November 14 announced the prices of Super Petrol Diesel and Kerosene, which are set to take effect at midnight tonight.

In the latest fuel review, EPRA revealed that the prices of the three fuel products will remain unchanged for the next one month, beginning Friday, November 15 until Saturday, December 14.

"We have calculated the maximum retail prices of petroleum products which will be in force from 15th  November 2024 to 14th December 2024," announced EPRA in part.

"In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene remain unchanged."

This means that Nairobi motorists will continue to pay Ksh180.66 for a litre of Super Petrol, Ksh168.06 for a litre of Diesel and Ksh151.39 for a litre of Kerosene.

According to the regulator, the prices were inclusive of the 16 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2023 and the Tax Laws (Amendment) Act 2020.

EPRA went on to state that the average landed cost of imported Super Petrol had increased by 0.54 per cent from Ksh82,422 (US$637.70) per cubic metre in September 2024 to Ksh82,867 (US$641.14) per cubic metre in October 2024.

Similarly, the landing cost of diesel decreased by 4.34 per cent from 82,231 (US$636.22) per cubic metre to 78,662 (US$608.61) per cubic metre while Kerosene increased by 3.97 per cent from Ksh80,573 (US$623.390) per cubic metre to Ksh83,773 (US$648.15) per cubic metre over the same period.

Currently, Kenya imports all its petroleum product requirements in refined form and the products are traded in international markets based on a pricing benchmark.

Further, 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 USD to Kenya Shilling (Ksh) during the computation of local pump prices.

"The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers," added EPRA.

"EPRA wishes to assure the public of its continued commitment to the observance of fair competition and protection of the interests of both consumers and investors in the energy and petroleum sectors."

The Central Bank of Kenya in its weekly bulletin published on November 8, revealed that international oil prices had increased during the week following the conclusion of the US Elections, a move coming amidst a weakening Kenyan shilling.

CBK also attributed the hike in global oil prices to the draw-down of oil inventories amid easing geopolitical risks in the Middle East and Europe. "The price of Murban oil increased to USD 74.83 on November 7, 2024, from USD 72.42 on October 31, 2024," CBK announced.

With this review, Kenyans should breathe a sigh of relief after the hike in international fuel prices sparked fears that they would be hit hard by any increase in fuel prices going into the December period and the festive season. Any change in fuel prices has a ripple effect on everything else, including the cost of food and transport.

Last month, EPRA announced that the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene all dropped, with Super Petrol and Diesel having the biggest decrease in prices. Beforehand, Nairobi motorists were paying Ksh188.84 and Ksh171.60 respectively for a litre of Super Petrol and Diesel, and Ksh158.32 for a litre of Kerosene. 

"Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows; Super Petrol, Diesel and Kerosene decrease by KShs.8.18, KShs.3.54, and KShs.6.93 per litre respectively," stated EPRA on October 14.