The Energy & Petroleum Regulatory Authority (EPRA) has calculated the maximum fuel prices which will be in force from December 15, 2022, to January 14, 2023.
In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene remain unchanged at Ksh177.30, Ksh162.00 and Ksh145.94 respectively.
The price of Diesel has been cross-subsidized with that of Super Petrol while a subsidy of Ksh25.07 per litre has been maintained for Kerosene in order to cushion consumers from the otherwise high prices. The Government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost.
The Free On board (FOB) price of Murban crude oil lifted in November 2022 was posted at US$ 92.45 per barrel a decrease of 5.72% from US$ 98.06 per barrel in October 2022.
Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate depreciated by 0.11% from Ksh124.06 per US$ in October 2022 to Ksh124.20 per US$ in November 2022.
The prices are inclusive of the 8% 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.
The average landed cost of imported Super Petrol increased by 2.65% from US$686.05 per cubic metre in October 2022 to US$704.21 per cubic metre in November 2022; Diesel increased by 6.56% from US$863.81 per cubic metre to US$920.44 per cubic metre while Kerosene increased by 6.01% from US$803.06 per cubic metre to US$851.31 per cubic metre.
The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers.