Kenyan motorists have a reason to smile as the Energy and Petroleum Regulatory Authority (EPRA) announced the largest drop in fuel prices for the period between January 15 and February 14, 2024.
According to the latest pump price review, the retail prices of Super Petrol and Diesel have been reduced by Ksh5 per litre, while Kerosene has been reduced by Ksh4.82 per litre.
“In the period under review, the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene decreased by Ksh5.00, Ksh5.00, and Ksh.4.82 per litre respectively,” read part of the statement.
In Nairobi, super petrol will retail at Ksh207, diesel at Ksh196.47, and kerosene at Ksh194.23.
The prices vary across different regions, depending on the distance from the port of Mombasa, where the fuel is imported.
The drop in fuel prices is attributed to the fall in global oil prices. “The average landed cost of imported Super Petrol decreased by 2.40% from US 694.44 per cubic metre in November 2023 to US677.78 per cubic meter in December 2023; diesel decreased by 9.06% from US 826.01 per cubic metre to US 751.15 per cubic meter; and kerosene decreased by 4.33% from US 759.93 per cubic metre to US 727.00 per cubic metre.”
The new fuel prices are expected to have a positive impact on various sectors of the economy, such as transport, agriculture, manufacturing, and household consumption.
Consumers will benefit from lower costs of goods and services, as well as increased disposable income. The lower fuel prices will also ease inflationary pressure and boost the economic recovery in the country.
The prices are inclusive of the 16 per cent Value Added Tax (VAT) as outlined by the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised rates for exercise duty adjusted for inflation.
