Kenyans Challenge EPRA’s Fuel Math: Critical Questions Arise
Kenyans have raised concerns about the numbers utilized by the Energy Petroleum and Regulatory Authority (EPRA) in computing the December-January 2024 fuel prices as they appeared to conflict with figures provided by the Central Bank of Kenya.
In the press statement released on Thursday, EPRA provided specific information about the worldwide murban crude oil prices and the corresponding currency exchange rate utilized in determining the most recent fuel pump prices.
Nevertheless, shortly following the publication, Kenyans observed that the rate of exchange employed by EPRA exceeded the rate issued by the CBK.
As per CBK, the dollar averaged Ksh153 in November, whereas EPRA specified that it was Ksh157.52 for the same period.
A greater exchange rate implies that fuel prices will inherently rise since petroleum products, bought in dollars, are imported into the country.
“Strange for a government entity to use Eastleigh and King’eero rates. The day EPRA and CBK use the same exchange rate is the day you can conclude currency is 100% free float,” economist Mohamed Wehliye stated.
On the other hand, Kenyans also identified discrepancies in the murban oil prices.
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EPRA reported November Murban prices at USD93.92 per barrel, whereas the CBK stated that the average Murban oil prices for November were around USD83 per dollar.
In the most recent evaluation, the cost of petrol dropped by Ksh5, diesel decreased by Ksh2, and kerosene saw a reduction of Ksh4.01.
“If the price of petrol was Ksh217 when the international crude price per barrel was USD120, why should it be Ksh212 when the crude oil prices have fallen to USD 69? If the same parameters used in calculating the prices are not,” a concerned Kenyan opined on X, formerly Twitter.
Furthermore, even with the decrease in landing expenses, EPRA observed that the government still needed to provide subsidies for fuel prices at the pumps in December- January 2024.
“The price of diesel has been cross-subsidized with that of Super Petrol, and to further cushion the economy, the Government has opted to stabilize the resultant diesel price.
“The government through the National Treasury has identified resources within the current resource envelope to compensate Oil Marketing Companies,” EPRA detailed in its press release.
Kenyans Challenge EPRA’s Fuel Math: Critical Questions Arise
