In a recent move that will undoubtedly affect Kenyan households, the Energy Petroleum Regulatory Authority (EPRA) has announced significant adjustments to fuel prices. As of September 15, 2023, Kenyans will be grappling with higher costs for various fuel products.
The EPRA, responsible for overseeing the nation’s energy sector, has meticulously calculated the maximum retail and wholesale prices of petroleum products. These new prices will remain in effect from September 15th to October 14th, impacting consumers and businesses across the country.
Let’s break down the changes:
1. Super Petrol: The maximum allowed pump price for Super Petrol in Nairobi has surged by Shs16.96 per litre. This means that, effective immediately, Super Petrol will retail at Sh211.64 per litre in the capital.
2. Diesel: Diesel users won’t be spared either, as the price per litre increases by Sh21.32. Diesel will now cost Sh200.99 per litre in Nairobi.
3. Kerosene: Kerosene, often used for cooking and lighting in many Kenyan households, has seen a substantial increase of Sh33.13 per litre. It will now be priced at Sh202.61 per litre in Nairobi.
These prices are inclusive of the 16 percent Value Added Tax (VAT), in line with various legislative acts, including the Finance Act 2023 and the Tax Laws (Amendment) Act 2020. Additionally, excise duty rates have been adjusted to account for inflation.
The reasons behind these price hikes are rooted in the global market dynamics. The EPRA has explained that the cost of imported Super Petrol increased by 4.80 percent, Diesel by 12.52 percent, and Kerosene by a substantial 19.79 percent in recent months. These fluctuations in prices are influenced by factors on the international stage, where petroleum trade is conducted in United States Dollars.
To put it into perspective, the average exchange rate applied for the conversion from USD to Kenya Shillings during this calculation stood at 148.98 in August.
For Kenyans outside of Nairobi, the new prices will vary slightly. In Mombasa, Super Petrol, Diesel, and Kerosene will retail at Sh208.58, Sh197.93, and Sh199.54 per litre, respectively. Meanwhile, in Kisumu, prices will be Sh211.40 for Super Petrol, Sh201.16 for Diesel, and Sh202.77 for Kerosene per litre.
These adjustments will undoubtedly impact daily life, from transportation costs to household budgets. It’s essential for Kenyan citizens and businesses to plan accordingly and explore strategies for mitigating the effects of these price hikes. In these challenging times, informed decision-making becomes more critical than ever.
