Nairobi — Kerosene prices remained unchanged at Sh152.78 per litre in the latest review by the Energy and Petroleum Regulatory Authority (EPRA), after the government applied the highest subsidy on the product.
EPRA data shows a subsidy of Sh108.10 per litre was applied on kerosene, compared to Sh23.92 on diesel and Sh4.68 on super petrol.
However, the subsidies on petrol and diesel were insufficient to offset rising landed costs, with petrol increasing by Sh28.69 and diesel by Sh40.30. The average landed cost of imported super petrol rose by 41.53 percent to $823.87 per cubic metre, while diesel jumped by 68.72 percent to $1,073.20 per cubic metre. Kerosene also surged by 105.15 percent to $1,311.93 per cubic metre.
As a result, pump prices increased, with a litre of petrol in Nairobi now retailing at Sh206.70, while diesel is priced at Sh206.84.
"Effectively, the Value Added Tax rate on Super Petrol, Diesel and Kerosene has been reduced from 16 percent to 13 percent in order to cushion consumers from the high landed cost of petroleum products as a result of escalated prices in the international market," EPRA said.
"The Government will further cushion consumers through the Petroleum Development Levy (PDL) Fund by utilising approximately Sh6.2 billion to stabilise pump prices."
