The price of fuel has increased according to the latest Energy and Petroleum Regulatory Authority (EPRA) release of the maximum retail prices of petroleum products, which will be in force from Thursday to October 15, 2022.
The review considered the weighted average cost of imported refined petroleum products and in line with Government policy to progressively remove subsidy on petroleum fuels, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows:
Super Petrol, Diesel and Kerosene increase by Sh20.18 per litre, Sh25.00 per litre and Sh20.00 per litre respectively.
The prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
The average landed cost of imported Super Petrol decreased by 24.31 per cent from US$1,074.01 per cubic metre in July 2022 to US$812.91 per cubic metre in August 2022; Diesel decreased by 13.90 per cent from US$1,103.03 per cubic metre to US$949.68 per cubic metre while Kerosene decreased by 19.07 per cent from US$1,111.53 per cubic metre to US$899.56 per cubic metre.
Although the subsidy for super petrol has been removed, a subsidy of Sh20.82/litre and Sh26.25/litre has been retained for Diesel and Kerosene respectively in order to cushion consumers from the otherwise high prices. The Government will utilise monies collected on account of the Petroleum Development Levy to compensate Oil Marketing Companies (OMCs) for the difference in cost.
The Free On board (FOB) price of Murban crude oil lifted in August 2022 was posted at USS 117.53 per barrel an increase of 7.16 per cent from US$ 109.68 per barrel in July 2022.
Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate depreciated by 0.60 per cent from Sh119.92 per US$ in July 2022 to Sh120.64 per USS in August 2022.
In the latest EPRA review released on Thursday, Nairobi residents will buy Super Petrol at Sh179.30 per litre, Diesel at Sh165.00 per litre and Kerosene at Sh147.94 per litre.
Mombasa residents will still buy Super Petrol at Sh176.98 per litre, Diesel will retail at Sh162.76 while Kerosene will retail at Sh145.69.
Fuel pump prices for Super Petrol will retail at Sh179.50, Diesel will stand at Sh165.70 and Kerosene will also remain Sh148.66 in Kisumu.
The historic hike in fuel pricesin Kenya comes after President William ruto, in his inauguration speech, announced the suspension of the fuel subsidies instigated by his predecessor Uhuru Kenyatta to cushion Kenyans, the economy can not sustain consumption subsidies.
The following is the full list of the reviewed fuel prices across Kenya: