Kenya’s Energy and Petroleum Regulatory Authority (EPRA) has announced significant price reductions for fuel products in their March 2024 review.
EPRA said that during the period March 15 to April 14, 2024, the maximum allowed petroleum pump price for Super, Petrol, and Kerosene decreased by Ksh 7.21 per litre, Ksh 5.09 per litre, and Ksh 4.49 per litre, respectively.
With the price reduction, super petrol will retail at Ksh 199.15 per litre, diesel at Ksh 190.38 per litre, and kerosene at Ksh 188.74 per litre.
These prices are the national average and may vary depending on your location. Prices typically increase further from Mombasa, the main import port.
EPRA said the fluctuating nature of fuel prices during the period where the landed cost for super petrol increased by 5.60%, going from US$666.16 to US$703.49 per cubic meter between January and February 2024.
On the other hand, diesel decreased slightly by 0.76%, dropping from US$728.23 to US$722.49 per cubic meter during the same period.
Kerosene saw a moderate increase of 1.65%, rising from US$718.51 to US$730.35 per cubic meter.
In February 2024, the Kenyan shilling gained 10.0% against the US Dollar, reaching Kshs 148.0 (compared to the mean monthly exchange rate of Kshs 164.4 recorded in January 2024).
The prices include the 16 percent 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.
Inflation
Kenya’s headline inflation in February declined after increasing for the first time in three months in January.
However, inflation has remained within the Central Bank of Kenya’s (CBK) target range of 2.5% to 7.5% for the eighth month.
The decrease in headline inflation followed the decline in Petrol, Diesel, and Kerosene prices, which decreased by Kshs 1.0 each to retail at Kshs 206.4, Kshs 195.5, and Kshs 193.2 per litre, respectively, from February 15, 2024, to March 14, 2024.
The Monetary Policy Committee raised the Central Bank Rate to 13.0% in February 2024 from the previous 12.5% to anchor the inflation rate.