Kenya’s Fuel Prices Steady as EPRA Maintains Stability Despite Economic Pressures

The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has announced that fuel prices will remain the same for the upcoming month, effective from November 15 to December 14, 2024.

The decision means the price of super petrol will stay at KSh 180.66 per litre in Nairobi, while diesel will continue to cost KSh 168.06, and kerosene will be priced at KSh 151.39 per litre.  

This announcement comes as a surprise to many Kenyans who expected a drop in fuel prices due to recent reductions in international oil costs and the stability of the Kenyan shilling.

In October, prices were lowered by KSh 8.18 for super petrol, KSh 3.54 for diesel, and KSh 6.93 for kerosene.

Keeping prices unchanged this month reflects how the government is balancing rising global oil prices and local economic challenges.  

In Mombasa, prices will be slightly lower than in Nairobi, with super petrol priced at KSh 177.42, diesel at KSh 164.82, and kerosene at KSh 148.45 per litre.

In Kisumu, consumers will pay KSh 180.68 for super petrol, KSh 168.44 for diesel, and KSh 151.82 for kerosene.  

EPRA stated that the average landed cost of imported super petrol rose by about 0.54%, while diesel saw a drop of about 4.34%.

HAVE YOU READ?

Namcor to Drill Three New Oil Wells by 2025, Advancing Namibia’s Energy Sector

Meanwhile, kerosene’s landed cost increased by nearly 3.97%.

Landing costs are the price of fuel when it arrives in the country, before taxes and other fees are added.  

The prices announced by EPRA include a 16% Value Added Tax (VAT) as required by the Finance Act of 2023 and other tax laws.

These laws are meant to ensure transparency in pricing while helping the government raise funds for essential services.  

Even though prices remain the same, there are concerns from consumers about the impact of increased road maintenance levies on fuel costs.

The Road Maintenance Levy (RML) has gone up recently, which puts more pressure on consumers who are already dealing with rising living expenses.  

Fuel prices play a key role in Kenya’s economy because they influence transport costs and overall inflation.

With inflation currently around 4.3%, stable fuel prices may help keep this rate steady, providing some relief to consumers already facing higher costs in other areas.  

The decision to maintain fuel prices also reflects broader strategies as Kenya deals with changes in global oil markets and fluctuations in the value of its currency against the US dollar.

While the Kenyan shilling has been stable recently, future changes could still lead to adjustments in fuel pricing.  

As Kenyans prepare for the festive season ahead, many hope fuel prices will eventually decrease to ease financial pressures during this high-spending period.

However, with EPRA’s latest review keeping prices steady, consumers may need to adjust their budgets to match current costs.  

 The balance between keeping fuel affordable and ensuring government revenue through taxes remains a tricky issue that will continue to affect consumers across the country in the coming months.