September: Price of Fuel Surpasses Ksh 200

The Energy and Petroleum and Regulatory Authority (EPRA) raised the price of Super Petrol by Ksh16.96, Diesel by Ksh21.32, and Kerosene by Ksh33.13 in a statement on Thursday night.

Super Petrol in Nairobi now costs Ksh211.64 a liter at the retail level, while diesel costs Ksh200.99 and kerosene Ksh202.61 as a result of the revisions that went into effect today, September 15.

Fuel price increases were linked to an increase in the weighted average cost of imported refined petroleum products by EPRA Managing Director Daniel Kiptoo.

“The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” he stated.

“The average landed cost of imported Super Petrol increased by 4.80% from US$739.21 (Ksh107,909.88) per cubic metre in July 2023 to US$774.67 (Ksh113,086.33) per cubic metre in August 2023; Diesel increased by 12.52% from US$701.99 (Ksh1022,476.50) per cubic metre to US$789.89 (Ksh115,308.14) per cubic metre while Kerosene increased by 19.79% from US$690.58 (Ksh100,810.87) per cubic metre to US$827.26 (Ksh120,763.41) per cubic metre.”

The EPRA kept the cost of gasoline at Ksh194.68 for Super Petrol, Ksh179.67 for Diesel, and Ksh169.48 for Kerosene in the previous month.

Due to rising international costs and the recently authorized 16% Value Added Tax (VAT) on petroleum goods, it was anticipated that prices would soar to a new high.

The head of EPRA claimed that the government had decided to ‘stabilize’ fuel prices in order to protect consumers.

“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilize pump prices for the August to September 2023 price cycle. Oil Marketing Companies (OMCs) will be compensated from the Petroleum Development Fund (PDF),” Kiptoo said.