In compliance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, the Energy & Petroleum Regulatory Authority (EPRA) has announced the revised maximum retail prices of petroleum products for the period spanning from 15th March 2024 to 14th April 2024.
During this review period, according to EPRA, consumers can expect a notable decrease in the maximum allowed pump prices for Super Petrol, Diesel, and Kerosene, amounting to KShs.7.21 per litre, KShs.5.09 per litre, and KShs.4.49 per litre, respectively. These adjustments come as a relief for consumers amidst the fluctuating global petroleum market.
The prices set by EPRA include the 16% Value Added Tax (VAT), aligning with the provisions outlined in the Finance Act 2023 and the Tax Laws (Amendment) Act 2020. Moreover, the excise duty rates, adjusted for inflation as per Legal Notice No. 194 of 2020, are incorporated into these prices.
The changes in the maximum retail prices are closely linked to the fluctuations observed in the international petroleum market.
EPRA says its calculations consider various factors, including the average landed cost of imported petroleum products.
For instance, while the average landed cost of imported Super Petrol experienced a 5.60% increase from US$666.16 per cubic meter in January 2024 to US$703.49 per cubic meter in February 2024, Diesel saw a decrease of 0.76% and Kerosene witnessed a modest increase of 1.65% during the same period.
Kenya’s dependence on imported petroleum products, traded in international markets based on pricing benchmarks provided by S&P Global Platts, underscores the significance of monitoring global trends.
The provided data indicates the trend of petroleum prices in international markets, revealing fluctuations in prices over recent months.
Moreover, the trade of petroleum products in international markets is conducted in United States Dollars (USD). Therefore, fluctuations in the USD-KShs exchange rate directly impact the computation of local pump prices.
The trend of the USD-KShs exchange rate over the last 12 months highlights the currency dynamics influencing local petroleum prices.
Additionally, the price of Murban Crude Oil, a key determinant in global petroleum pricing, has fluctuated over the past year. These fluctuations, as evidenced by the trend of Murban Crude Oil prices in international markets, contribute to the complexities of determining local petroleum prices.
In light of EPRA’s announcement, consumers across major towns in Kenya can anticipate relief at the pumps. A detailed breakdown of cost items for retail prices in Nairobi is provided as Annex II, offering transparency into the factors influencing local petroleum prices.
In summary, Kenya’s petroleum market experiences a decrease in maximum retail prices for Super Petrol, Diesel, and Kerosene, providing respite for consumers amidst global market fluctuations. EPRA’s diligent monitoring of international trends and transparent pricing mechanisms ensure fairness and accountability in the country’s petroleum sector.
