Fuel prices for January 2023 remained unchanged for the third consecutive month since November 2022, according to the Energy and Petroleum Regulatory Authority (EPRA).
“In the period under review, the maximum allowed petroleum pump prices for super petrol, diesel, and kerosene remained unchanged,” reads an EPRA statement in part.
The latest monthly review released on Saturday, January 14, 2023, shows that Nairobians will continue paying 177 shillings for super Petrol, 162 shillings for Diesel, and 145.9 shillings for Kerosene per liter. These are the same prices paid in December 2022.
The pump prices are inclusive of an 8% Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
To cushion Kenyans from the skyrocketing prices, the regulator has maintained a subsidy of 25.13 per cent on Kerosene and cross-subsidized Diesel Prices with that of Super petrol.
“The price of diesel has been cross-subsidized with that of super Petrol, while a subsidy of Sh25.13 per liter has been maintained for Kerosene to cushion consumers from the otherwise high prices. The government will utilize the Petroleum Development Levy (PDL) to compensate oil marketing companies for the difference in cost.” EPRA added.
What Cities will pay
Mombasa motorists will pay 174.98 shillings for Super Petrol, 159.76 shillings for Diesel, and 143.69 shillings for Kerosene per liter.
Those in Eldoret will pay 177.50 shillings for Super Petrol, 162.72 shillings for Diesel and 146.67 shillings for Kerosene per liter.
Meanwhile, Nakuru fuel prices stand at 176.62 shillings for Super Petrol, 161.83 shillings for Diesel, and 145.79 shillings for Kerosene per liter.
In Kisumu, Kerosene prices will be 104.26 shillings, Diesel 111.30 shillings, and Petrol at 130.12 shillings per liter.
Fuel Subsidy Removal
Fuel prices jumped to a record high in September 2022. Super Petrol increased by 20 shillings to 179.30 shillings per liter, while Diesel and Kerosene prices increased by 20 and 25 shillings to retail at 165 and 147.94 shillings per liter, respectively.t
This was after President William Ruto’s administration suspended the fuel subsidies in August 2022, citing that they were ineffective and costly to taxpayers.
The president said the subsidy will cost Kenyans up to 280 million shillings if left to run until the next financial year.
“In addition to being very costly, consumption subsidy interventions are prone to abuse; they distort markets and create uncertainty, including artificial shortages of the very products being subsidized,” he said
Under the new prices announced by EPRA in September, the petrol subsidy was removed, while those for diesel and Kerosene were reduced.
“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 authority concluded.
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