Valentines Delight For Motorists As EPRA Lowers Fuel Prices

The Energy and Petroleum Regulatory Authority (EPRA) has again reduced the fuel prices for the period between Thursday, February 15, 2024 and Thursday, March 14, 2024, a rare gift for motorists on Valentine's Day.

In the latest monthly review, the price of Super Petrol, Diesel and Kerosene were all lowered by Ksh1. 

The new prices for the month are as follows: In Nairobi, Super Petrol, Diesel and Kerosene will now retail at Ksh206.36, Ksh195.47 and Ksh193.23 effective midnight for the next 30 days.

Last month the prices were as follows: In Nairobi, Super Petrol, Diesel and Kerosene retailed at Ksh207.36, Ksh196.47 & Ksh194.23.

"The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020," read the statement in part.

EPRA added that the price of Diesel has been cross-subsidized with that of Super Petrol while Kerosene has been fully stabilized.

Furthermore, Oil Marketing Companies (OMCs) will be compensated for the under-recovery of costs from the Petroleum Development Levy (PDL) Fund.

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.

"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," added the statement.

The latest decrease came amidst the Kenyan shilling showing signs of a resurgence on Wednesday, hitting its strongest in more than three months as confidence the government would pay off a Eurobond maturing in June buoyed investor appetite.

As reported by Reuters, the shilling strengthened over 3% against the U.S. dollar to reach 150.00/151.00, a level it last traded at on October 26, compared with Tuesday's close of 155.50/156.50 to the dollar.

Central Bank of Kenya (CBK) data on Tuesday indicated that the US Dollar to Kenyan Shilling exchange rate stood at Ksh158.66.

CBK in a statement revealed that the Shilling had continued to stabilise, attributing the gain to favourable diaspora remittances and the thriving Tourism industry. 

This significant growth from a previous 21 per cent fall recorded in December 2023 offered traders a major boost as import prices of various products recorded a drop too. 

It is worth noting that EPRA relies on the previous month's dollar-shilling exchange rate to calculate its monthly price review.

In addition, international oil market prices dropped, with petrol falling by 10.66 per cent, diesel by 11.20 per cent and kerosene by 5.82 per cent, meaning it came as no surprise to Kenyans on the just-released fuel prices.