The Energy and Petroleum Regulatory Authority (EPRA) has announced an increase in fuel prices in Kenya for the period from October 15 to November 14, 2023.
The prices for Super Petrol, Diesel, and Kerosene have risen by 2.7%, 2.2%, and 1.2%, respectively, reaching Kshs 217.4, Kshs 205.5, and Kshs 205.1 per litre.
“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel, and Kerosene increase by Ksh5.72, Ksh4.48, and Ksh2.45 per litre respectively.
“In Nairobi, Super Petrol, Diesel, and Kerosene will now retail at Ksh217.36, Ksh205.47, and Ksh205.06 effective midnight for the next 30 days,” read the EPRA statement in part.
The average landing costs per cubic meter for these fuels also saw an increase in September 2023, with Super Petrol up by 3.9% to USD 805.1, Diesel by 7.1% to USD 845.7, and Kerosene by 5.0% to USD 868.7.
The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
Despite the government’s efforts to stabilize fuel prices by extending the existing oil supply deal with Emirates National Oil Corporation, Abu Dhabi National Oil Corporation, and Saudi Aramco until December 2024, fuel prices have continued to rise significantly due to increasing global oil prices.
Concurrently, the Kenyan shilling depreciated against the US dollar by 2.9% to Kshs 153.3, and petroleum products were subject to high taxation as provided in the Finance Act 2023.
The projection is that fuel prices will continue to rise in the coming months due to the continued depreciation of the Kenyan shilling against the dollar, which increases the importation costs of petroleum products.