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EPRA announces new fuel prices for June & July

pulselive.co.ke 2024/6/26

EPRA reduces maximum retail prices for petroleum products in Kenya

Fuel inflation was the key driver of overall consumer prices in Kenya in the past year. Image: Nation Africa
Fuel inflation was the key driver of overall consumer prices in Kenya in the past year. Image: Nation Africa

The Energy & Petroleum Regulatory Authority (EPRA) has announced a reduction in the maximum retail prices for petroleum products in Kenya for the period from June 15, 2024, to July 14, 2024.

This adjustment is in accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022.

In this period, the maximum allowed petroleum pump prices for Super Petrol, Diesel, and Kerosene will decrease as follows:

  1. Super Petrol: Sh3.00 per litre
  2. Diesel: Sh6.08 per litre
  3. Kerosene: Sh5.71 per litre
  1. Super Petrol: KShs 189.84 per litre
  2. Diesel: KShs 173.10 per litre
  3. Kerosene: KShs 163.05 per litre

These prices include the 16% Value Added Tax (VAT) in compliance with the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised excise duty rates adjusted for inflation as per Legal Notice No. 194 of 2020.

Landed Cost

  1. Super Petrol: KShs 100.30 per litre
  2. Diesel: KShs 92.43 per litre
  3. Kerosene: KShs 90.60 per litre

Distribution and Storage Costs

  1. Pipeline Transport: Sh2.58 per litre (for all products)
  2. Pipeline Losses: Sh0.07 (Super Petrol), Sh0.06 (Diesel & Kerosene)
  3. Depot Losses: Sh0.75 (Super Petrol), Sh0.39 (Diesel), Sh0.37 (Kerosene)
  4. Delivery within 40 km of Nairobi: Sh0.54 per litre (for all products)

Storage and Distribution

  1. Super Petrol: Sh3.94 per litre
  2. Diesel: Sh3.57 per litre
  3. Kerosene: KShs 3.55 per litre

Margins

  1. Oil Marketing Companies Margins:
  2. Super Petrol: Sh12.39 per litre
  3. Diesel: Sh12.36 per litre
  4. Kerosene: Sh12.36 per litre
A pump attendant fills the tank of a car at a petrol station in September 4, 2018 in Nairobi as a 16 per cent VAT on petroleum products was decided and fuel distributors refused to collect stocks from depots. (Photo by SIMON MAINA/AFP via Getty Images)
A pump attendant fills the tank of a car at a petrol station in September 4, 2018 in Nairobi as a 16 per cent VAT on petroleum products was decided and fuel distributors refused to collect stocks from depots. (Photo by SIMON MAINA/AFP via Getty Images)

Price Stabilisation Fund

  1. Super Petrol: Sh-2.99 per litre (subsidy)
  2. Diesel: Sh1.77 per litre (subsidy)
  3. Kerosene: No subsidy

Taxes and Levies

  1. Super Petrol: Sh76.20 per litre
  2. Diesel: Sh62.97 per litre
  3. Kerosene: Sh56.54 per litre
  1. Excise Duty
  2. Road Maintenance Levy
  3. Petroleum Development Levy
  4. Petroleum Regulatory Levy
  5. Railway Development Levy
  6. Anti-adulteration Levy
  7. Merchant Shipping Levy
  8. Import Declaration Fee
  9. Value Added Tax (VAT)

The average landed cost of imported petroleum products has also seen a decrease:

  1. Super Petrol: Decreased by 1.95% from $765.87 per cubic metre in April 2024 to $750.95 per cubic metre in May 2024.
  2. Diesel: Decreased by 3.92% from $719.21 per cubic metre to$690.99 per cubic metre.
  3. Kerosene: Decreased by 6.84% from $728.97 per cubic metre to $679.14 per cubic metre.

Kenya imports all its petroleum products in refined form, which are traded in international markets based on a pricing benchmark provided by S&P Global Platts.

The trade of petroleum products is conducted in United States Dollars (USD), and an exchange rate is applied to convert the USD to Kenyan Shillings (KShs) during the computation of local pump prices.

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