Kenya: Relief for Kenyans As Fuel Prices Remain Unchanged

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(file photo).
14 December 2022
Capital FM (Nairobi)
By Susan Nyawira

Nairobi — Fuel prices will remain unchanged for the month of December offering Kenyans a slight relief as they head into the Christmas season filled with long-distance travel.

In its latest fuel price review, the Energy& Petroleum Regulatory Authority (EPRA) said the prices of super petrol, diesel and kerosene will remain the same until January 14 when the next review is due.

In Nairobi, a litre of petrol will continue to retail at Sh177.30 while a litre of diesel will retail at Sh162.00.

The energy regulator noted that the price of diesel has been cross-subsidized with that of super petrol.

Cross-subsidization is when a marketer charges higher prices to a group of consumers in order to subsidise lower prices for another group.

In this case, it means petrol users will pay a higher price so as to ensure diesel users have a lower price.

A litre of kerosene will continue to retail at Sh145.94 with the government maintaining a Sh25.07 subsidy on the commodity 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," said EPRA.

In Mombasa, a litre of petrol will retail at Sh174.98, diesel at Sh159.76 and kerosene at Sh143.69 while in Kisumu a lite of petrol will retail at Sh177.50, diesel at Sh162.70, kerosene at Sh146.66.

The prices are inclusive of the 8 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.

The energy regulator maintained the fuel prices despite a slight increase in the landing cost of the commodities.

The average landed cost of imported Super Petrol increased by 2.65 per cent from USD686.05 per cubic metre in October 2022 to USD704.21 per cubic metre in November 2022; Diesel increased by 6.56 per cent from USD863.81 per cubic metre to USD920.44 per cubic metre.

Further, the landing cost of Kerosene increased by 6.01 per cent from USD803.06 per cubic metre to USD851.31 per cubic metre.

Read the original article on Capital FM.

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