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EPRA Retains Fuel Prices Again

UPDATE 4.58 pm: The Energy and Petroleum Regulatory Authority (EPRA) has for the third month in a row retained fuel prices for the period between January 15, 2022, and February 14, 2022.

Super Petrol still remains at Ksh129.72 per litre in Nairobi while Diesel remains at Ksh110.60 per litre. Kerosene remains at Ksh103.54 per litre.

In Mombasa, the cost of fuel will remain unchanged at Ksh127.46 for Super Petrol, Ksh108.36 for Diesel and Ksh101.29 for Kerosene. For Kisumu, petrol, diesel and kerosene will stay at Ksh130.12, Ksh111.30 and Ksh104.26 respectively.

Kenyans’ January woes could soon get worse as the government’s failure to pay fuel subsidy fees to the marketers of petroleum products could lead to an increase in fuel prices ahead of the review on Friday, January 14.

Oil marketers have been met with delays in terms of compensation after they kept the prices low at the expense of a cut.

The Business Daily reported that the government has not paid for shipments that arrived during the December-January review in addition to other unsettled payments from November 2021.

The government had only paid oil marketers Ksh1.753 billion for the two shipments in the November-December cycle, leaving the two shipments unaccounted for.

An image of fuel prices advertised at a petrol station. /NAIROBI NEWS

The delays have forced oil marketers to undergo cash flow problems as they rely on bank loans to cater for the cost of fuel and distribution of the commodity.

The Oil Marketers Association of Kenya (OMAK) is reportedly demanding the government to pay interest on the delayed firms, a move that will see them dig deeper into the pockets of taxpaying Kenyans.

The Energy and Petroleum Regulatory Authority (EPRA) has since 2021 cut margins for the oil marketers to maintain the prices as the State uses funds from a fuel subsidy to compensate dealers. This has been done to avoid the public outrage that sparked when the cost of fuel had reached its highest during the September monthly review.

At that time, the fuel prices jumped by Ksh7 per litre, with kerosene the most affected by the sharp rise as it jumped by Ksh12.7. Following nationwide uproar from Kenyans and politicians alike, the prices dropped by Ksh5 in October.

EPRA will set to review the fuel prices across the country on Friday in what could determine the cost of living for Kenyans for the next one month, in a month known for financial constraints following the festive period.

Back in December, the government and oil marketers entered a deal worth Ksh8.12 billion as a result of retaining the fuel prices for the monthly period between December 15, 2021, and January 14, 2022. The fuel regulators had for the second month in a row, retained the fuel prices to cushion Kenyans ahead of the festive period.

At the moment, Super Petrol remains at Ksh129.72 per litre in Nairobi while Diesel retails at Ksh110.60 per litre. Kerosene retails at Ksh103.54 per litre, the changes had taken effect from midnight, Wednesday, December 15.

Several oil marketers and traders were paid the billions as a result of keeping the prices intact.

The deal saw compensation for Diesel handed the largest share at Ksh4.82 billion followed by that of super petrol at Ksh3.03 billion and Kerosene at Ksh0.26 billion and the amounts were all based on the average consumption of the three fuel products.

EPRA also retained the margins for suppliers at zero per litre of super, diesel and kerosene in the latest review. It also slashed petrol prices by Ksh4.57 a litre, diesel at Ksh7.90 and Kerosene at Ksh9.43.

The move was meant to cushion motorists from rising global fuel prices on the back of a speedier than expected economic recovery following the deployment of COVID-19 vaccines across the globe.

Had the deal not taken place, super petrol would have hit a historic high of Ksh148.04 a litre, diesel Ksh132.49 a litre and kerosene Ksh127.07 a litre. Such a move would have ignited a fresh uproar given that Kenyans have been attacking the government for several months for making their cost of living very expensive.

Fuel prices as from December 15, 2021 to January 14, 2022. /FILE.VIRALTEAKE

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