Home Business Petrol prices up by Sh2 in latest EPRA review

Petrol prices up by Sh2 in latest EPRA review

by kenya-tribune

NAIROBI, Kenya, March 14 – The Energy and Petroleum Regulatory Authority(EPRA) has increased the price of super petrol by Sh2 in the latest fuel price review, while that of diesel and kerosene remains unchanged.

In Nairobi, petrol will retail at Sh179.30 for the one-month period lapsing April 14, diesel and kerosene will continue to retail at Sh162 and Sh145.94 respectively.

The price of diesel has been cross-subsidized with that of super petrol while a subsidy of Sh23.49/litre has been maintained for Kerosene in order to cushion consumers from the otherwise high prices

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

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

“The Government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost,” said EPRA.

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.

According to EPRA, the average landed cost of imported Super Petrol decreased by 0.06 per cent from USD659.87 per cubic metre in January 2023 to USD659.47 per cubic metre in February 2023; Diesel decreased by 2.52 per cent from USD779.49 per cubic metre to USD759.88 per cubic metre.

Kerosene decreased by 1.51 per cent from USD774.99 per cubic metre to USD763.28 per cubic metre.

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