EPRA on Sunday, July 14 announced that the prices of Super Petrol, Diesel and Kerosene all went down by Ksh1, Ksh1.50 and Ksh1.30, all per litre, respectively.
The Energy and Petroleum Regulatory Authority (EPRA) has retained fuel prices for the period between Thursday, August 15 and Saturday, September 14, meaning Kenyans will pay to fuel their cars at the same prices for a month.
Last month, Nairobi motorists were paying Ksh188.84 for Super Petrol, Ksh171.60 for Diesel and Ksh161.75 for Kerosene. EPRA on Sunday, July 14 announced that the prices of Super Petrol, Diesel and Kerosene all went down by Ksh1, Ksh1.50 and Ksh1.30, all per litre, respectively.
However, the small decrease by Ksh1 announced last month was overshadowed by the lingering impact of recent tax hikes, leaving consumers questioning whether the changes will bring any real relief.
“In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, we have calculated the maximum retail prices of petroleum products, which will be in force from 15th August 2024 to 14th September 2024.
New fuel prices as announced by EPRA on August 14, 2024. /VIRAL TEA KE
“In the period under review, the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene remain unchanged,” EPRA stated in part.
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.
The average landed cost of imported Super Petrol this month decreased by 1.06% from US$716.03 per cubic metre in June 2024 to US$708.47 per cubic metre in July 2024.
Furthermore, Diesel increased by 1.62% from US$682.73 per cubic metre to US$693.82 per cubic metre while Kerosene increased by 1.87% from US$692.80 per cubic metre to US$705.74 per cubic metre.
Last month’s decrease in fuel prices was celebrated by Kenyans, but not before they realised that the government in stealthy circumstances increased the controversial road maintenance levy (RML) from Ksh18 in the June-July cycle to Ksh25, affecting both consumers of Super Petrol and Diesel.
This hike, combined with the lingering effects of the now-nullified Finance Act 2023, which had doubled the VAT on fuel from 8 per to 16 per cent, has kept fuel prices high.
The High Court’s recent nullification of the Finance Act 2023, which introduced the doubled VAT, complicates things, with the reversal of the VAT increase expected to have a notable impact on fuel prices in the upcoming pricing cycles, potentially reducing costs by more than Ksh10 per litre.
However, the benefits of this VAT cut are likely to be tempered by the persistent effects of the raised RML.
The increase came despite pronouncements by former Transport Cabinet Secretary (CS) Kipchumba Murkomen (now in Sports) during public participation that the government would delay plans to hike the levy.
EPRA had applied a subsidy of Ksh3.35 and Ksh2.50 per litre of petrol and diesel to cushion consumers from what would have been a rise in fuel prices. Landed costs of Super petrol and Diesel also fell by 4.65 per cent and 1.19 per cent respectively.
The drop comes at the back of the shilling’s rally against the dollar and the global drop in prices of crude and refined fuel. In particular, EPRA relied on an exchange rate of 129.06 units to the dollar compared to 132.72 units applied in the schedule last month.
Ngong Road under construction in Kenya and EPRA’s logo (inset). /CONSTRUCTION KENYA.EPRA KENYA