Epra keeps fuel prices unchanged ahead of festivities

The energy regulator has kept fuel prices unchanged for the second month in a row in its latest monthly review.

This comes as a reprieve for consumers from a record-breaking spike in the price of the vital commodity during the busy festive season that would have significantly raised fares and transport charges as well as increased the cost of goods and electricity.

The Energy and Petroleum regulatory Authority (Epra) announced that the current fuel prices would remain in place for the third month until the next review in mid-January. This means that consumers in Nairobi will continue to pay Sh129.72 for a litre of petrol, Sh110.6 for diesel and Sh103.54 for kerosene.

“In the period under review, the pump prices of super petrol, diesel and kerosene remain unchanged,” the energy regulator said.

“The prices are inclusive of the eight per cent value added tax (VAT) in line with the provisions of the Finance Act, 2018, the Tax Laws (Amendment) Act, 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” Epra said.

Motorists in Mombasa will continue to pay Sh127.46 per litre of petrol, Sh108.36 for diesel and Sh101.29 while those in Kisumu will pay Sh130.12, Sh111.3 and Sh104.26 for petrol, diesel and kerosene respectively.

Meanwhile, petrol will retail at Sh129.24 in Nakuru, Sh110.43 for diesel and Sh103.39 for kerosene, while motorists in Eldoret will pay Sh130.13, Sh111.32 and Sh104.27 for the three products respectively.

The unchanged prices means that the government will continue using fuel subsidies to reimburse suppliers whose margins were cut to zero.

Epra said fuel prices would have hit a historic high had the government not applied the subsidy, a move that would have elicited fresh public outcry over the rising cost of living.

The energy regulator said the price of a litre of petrol would have hit a record Sh148.04, an increase of Sh18.32 per litre minus the subsidy due to higher landed cost of the product.

Meanwhile, diesel would have increased by Sh21.89 to retail at a historic Sh132.49 while kerosene would also have increased by Sh23.53 to hit a new high of Sh127.07.

“Despite the increase in landed costs, the applicable pump prices for the cycle have been maintained as the ones applicable in the previous cycle.”

“The government will utilise the Petroleum Development Levy to cushion consumers from the otherwise high prices,” Epra said.