Fuel prices in Kenya will remain unchanged for the third consecutive month at Kshs 177.3, Kshs 162.0 and Kshs 145.9 per liter of Super Petrol, Diesel and Kerosene, respectively.
This is according to the Energy and Petroleum Regulatory Authority’s (EPRA) monthly statement on the maximum retail fuel prices in Kenya, effective from February 15 2023 to March 14 2023.
“The government will utilize the Petroleum Development Levy to compensate oil marketing companies for the difference in cost,” said EPRA on Tuesday.
The energy regulator maintained the fuel prices despite a decline in the landing cost of the commodities.
The average landed cost of imported Super Petrol decreased by 0.12 per cent from USD660.65 in December 2022 to USD659.87.
Diesel decreased by 4.76 per cent from USD818.45 to USD779.49. Further, the landing cost of kerosene dropped by 5.1 per cent from USD816.62 to USD774.99.
Although the decline in average landed costs of imported fuel, fuel prices remain relatively high in Kenya in comparison to global fuel prices that have been on a downward trajectory since June 2022, with the current prices closing at USD 80.7 per barrel as of January 12, 2023, a significant 31.4% decline from the USD 117.7 per barrel recorded as of June 12022.
The high fuel prices in the country are largely attributable to the partial removal of fuel subsidies under the Petroleum Development Levy program by the current administration in September 2022.
Globally, the Organization of the Petroleum Exporting Countries (OPEC) raised its oil demand growth forecast for 2023 by 100,000 bpd, to 2.3 million bpd in its latest edition of the Monthly Oil Market Report.
The demand growth forecast calls for 400,000 bpd in growth from Organization for Economic Cooperation and Development (OECD) countries and 2 million bpd from non-OECD countries.
