Kenya is set to witness a notable drop in petroleum prices over the upcoming month, offering relief to consumers amid economic concerns.

The Energy & Petroleum Regulatory Authority (EPRA) has announced the maximum retail prices for petroleum products, effective from Monday to May 14th, 2024, in accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022.

During this period, the maximum allowable prices for Super Petrol, Diesel, and Kerosene will decrease significantly.

According to EPRA, Super Petrol will see a reduction of Sh5.31 per litre, Diesel will drop by Sh10.00 per litre, and Kerosene will witness a substantial decrease of Sh18.68 per litre.

"In the period under review, the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene decrease by Sh5.31 per litre, Sh10,00 per litre and Sh18.68 per litre respectively," EPRA stated.

These adjustments come as a result of fluctuations in the global market. EPRA notes that the average landed cost of imported Super Petrol rose by 4.86 per cent from US$703.49 per cubic metre in February 2024 to US$737.69 per cubic metre in March 2024.

Conversely, Diesel increased marginally by 0.003 per cent from US$722.49 per cubic metre to US$722.51 per cubic metre, while Kerosene experienced a decrease of 0.69 per cent from US$730.35 per cubic metre to US$725.31 per cubic metre.

It's worth noting that Kenya relies entirely on imported refined petroleum products, which are traded in international markets.

The pricing benchmark provided by S&P Global Platts serves as a reference point for these transactions.

Furthermore, the trade of petroleum products in international markets is denominated in United States Dollars (USD), with an exchange rate applied for conversion to Kenyan Shillings (KShs) during the computation of local pump prices.

These adjustments align with the government's efforts to mitigate the impact of rising global fuel prices on consumers.

The prices announced by EPRA are inclusive of the 16 per cent Value Added Tax (VAT), as stipulated by the Finance Act 2023 and the Tax Laws (Amendment) Act 2020.

Additionally, excise duty rates have been adjusted for inflation in accordance with Legal Notice No. 194 of 2020.

The reduction in petroleum prices is expected to alleviate the financial burden on Kenyan households and businesses, offering some respite in the face of economic challenges.

As the country continues to navigate through uncertain times, such measures aim to provide stability and support to the populace.