The Energy and Petroleum Regulatory Authority (EPRA) has announced a significant reduction in fuel prices for March-April, offering relief to both motorists and households. Effective immediately, Super Petrol prices will decrease by KSh 7.21 per litre, while Diesel and Kerosene will see cuts of KSh 5.09 and KSh 4.49 per litre respectively. This adjustment comes in the wake of a stable performance of the Kenya Shilling against the US dollar, with EPRA attributing the price cuts directly to this stability.
Nairobi residents will now find themselves paying KSh 199.15 for Super Petrol, KSh 190.38 for Diesel, and KSh 188.74 for Kerosene, marking a notable reduction in daily expenses for commuters and households reliant on kerosene for domestic purposes.
The global dynamics of petroleum trade play a significant role in determining local pump prices, with EPRA highlighting the influence of the United States Dollar on international markets. Despite a marginal increase in the average landed cost of imported super petrol, Diesel costs have slightly decreased, offering insight into the nuanced market forces affecting fuel prices.
Taxes and levies continue to represent a substantial portion of pump prices, with EPRA’s mid-February review already reflecting a reduction of KShs. 1 per litre across all fuel products. The imposition of a 16% VAT on petroleum products via the Finance Bill, 2023, had previously contributed to price spikes, making EPRA’s recent adjustments a welcome relief for consumers.
VAT remains a significant component of the total taxes and levies on petrol, followed closely by excise duty and road maintenance levies. While the road maintenance levy does not apply to kerosene, the anti-adulteration levy, a notable component of kerosene taxes, further underscores the complex taxation landscape within the fuel sector.
EPRA’s proactive approach to mitigating fuel price fluctuations reflects its commitment to balancing consumer affordability with market dynamics, ensuring a sustainable energy future for Kenya. As economic uncertainties persist, EPRA’s role remains pivotal in providing stability and affordability in the energy sector.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
14th March, 2024
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