EPRA Raises Fuel Prices in Latest Review: What Kenyans Need to Know
The Energy and Petroleum Regulatory Authority (EPRA) has adjusted fuel prices in its latest review, announced on Tuesday, January 14. The changes affect Super Petrol, Diesel, and Kerosene, with new maximum pump prices reflecting slight increases.
- Super Petrol: Up by Ksh0.29 to retail at Ksh176.58 per litre.
- Diesel: Increased by Ksh2.00 to Ksh167.06 per litre.
- Kerosene: Up by Ksh3.00 to Ksh151.39 per litre.
The revised prices, effective Wednesday, January 15, will remain in place until February 14, 2025. These figures include the mandatory 16% VAT, as required under the Finance Act 2025 and other applicable laws.
Reasons Behind the Price Hike
EPRA attributed the increase to rising landed costs for imported diesel, even though Super Petrol and Kerosene saw declines in their landed costs:
- Super Petrol: Fell by 0.54% to US$611.69 per cubic metre.
- Diesel: Increased by 0.06% to US$654.10 per cubic metre.
- Kerosene: Dropped by 12% to US$619.64 per cubic metre.
Despite these changes, the regulator stated that additional factors, including inflation adjustments and international oil prices, influenced the final retail prices.
Impact on Kenyans
The announcement came as a disappointment to many Kenyans who had hoped for stable fuel prices. This expectation stemmed from the steady performance of the Kenyan Shilling, which traded at Ksh129.47 per US dollar as of January 9, 2025, according to the Central Bank of Kenya (CBK).
Concerns about inflation are growing, especially as global trends continue to show upward pressure. The CBK highlighted in its recent bulletin that inflation in advanced economies, including the Eurozone, climbed to 2.4% in December 2024.
International Oil Prices
Although global oil prices have remained relatively stable, the cost of Murban oil recorded a slight increase, trading at USD 77.75 (Ksh10,066.29) per barrel as of January 9, 2025.
The Bottom Line
Kenyans will need to prepare for higher costs at the pump, with ripple effects expected on the cost of living. As the new prices take effect, households and businesses alike will feel the impact of these adjustments.
EPRA Raises Fuel Prices in Latest Review: What Kenyans Need to Know
