The Energy & Petroleum Regulatory Authority (EPRA) in Kenya has recently announced the new fuel prices that will be in effect from 15th May 2023 to 14th June 2023. These prices have been determined based on the provisions of the Petroleum Act 2019 and Legal Notice No. 192 of 2022.
Fuel Price Increase in Nairobi: In Nairobi, the maximum retail prices for Super Petrol, Diesel, and Kerosene have all witnessed an increase. Super Petrol will see a rise of Kshs. 3.40 per litre, while Diesel will increase by Kshs. 6.40 per litre, and Kerosene will experience a hike of Kshs. 15.19 per litre. Notably, the subsidy on Diesel and Kerosene has been removed.
Inclusion of Value-Added Tax (VAT) and Excise Duty
These fuel prices include the 8% Value Added Tax (VAT) as per the provisions of the Finance Act 2018 and the Tax Laws (Amendment) Act 2020. Additionally, the rates for excise duty have been adjusted for inflation, in line with Legal Notice No. 194 of 2020.
The cost of imported Super Petrol has increased by 8.63% from US$666.51 per cubic metre in March 2023 to US$724.01 per cubic metre in April 2023. However, the cost of Diesel has decreased by 2.51% from US$705.82 per cubic metre to US$688.07 per cubic metre, and Kerosene has decreased by 1.13% from US$707.53 per cubic metre to US$699.54 per cubic metre. These changes in costs reflect the global market dynamics and fluctuations in fuel prices.
The FOB price of Murban crude oil, lifted in April 2023, was posted at US$83.36 per barrel, showing a 0.88% increase compared to the previous month’s price of US$82.63 per barrel. Additionally, during the same period, the US Dollar to Kenya Shilling exchange rate appreciated by 0.47%. These variations in crude oil prices and exchange rates significantly impact the final retail prices of petroleum products.
EPRA’s main objective is to ensure that the retail prices of petroleum products in Kenya cover importation and other costs while remaining reasonable for consumers. Through its regulations, EPRA aims to promote fair competition and safeguard the interests of both consumers and investors in the energy and petroleum sectors. By monitoring and adjusting prices based on market conditions, EPRA strives to maintain a balance between affordability for consumers and sustainability for industry stakeholders.