Kenyans will have to dig deeper into their pockets following the Energy and Petroleum Regulatory Authority (EPRA) announcement of higher fuel prices in its latest review on Tuesday, January 14, 2025.
In its statement, EPRA disclosed that pump prices for Super Petrol, Diesel, and Kerosene had risen by Ksh0.29, Ksh2.00, and Ksh3.00 per litre, respectively. This brings the new retail prices to Ksh176.58 for Super Petrol, Ksh167.06 for Diesel, and Ksh151.39 for Kerosene.
“The prices include the 16% Value Added Tax (VAT) in accordance with the Finance Act 2025, the Tax Laws (Amendment) Act 2024, and revised excise duty rates adjusted for inflation as per Legal Notice No. 194 of 2000,” EPRA stated.
EPRA attributed the increase in prices primarily to a rise in the landed cost of imported diesel. While the landed costs of Super Petrol and Kerosene had decreased, Diesel saw a slight increase, prompting the upward adjustment.
According to EPRA, the average landed cost of imported Super Petrol fell by 0.54%, from $612.93 per cubic metre in November 2024 to $611.69 in December 2024. Kerosene also saw a significant drop of 12%, decreasing from $660.30 per cubic metre to $619.64. However, Diesel rose marginally by 0.06%, climbing from $643.69 to $654.10 over the same period.
The new fuel prices will remain in effect for the next 30 days, from January 15 to February 14.
The announcement has surprised many Kenyans who had hoped for stable prices, particularly given the recent stability of the Kenyan Shilling against major international currencies. The Central Bank of Kenya (CBK) reported that the Shilling traded at KSh129.47 per US dollar during the week ending January 9, 2025.
Despite the currency stability, international oil prices have shown slight fluctuations. For instance, the price of Murban oil, a key benchmark, edged higher to USD 77.75 (KSh10,066.29) per barrel as of January 9, 2025.
EPRA’s decision comes amid broader concerns about global inflation trends. Data from the CBK highlighted that inflation in the Eurozone increased to 2.4% in December 2024, up from 2.2% in November, signaling ongoing global price pressures.
The fuel price hike has raised concerns among Kenyans, who fear the ripple effects of increased transportation and production costs on the cost of living.
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