EPRA’s night calculations that pushed fuel prices above Ksh.200

Data from the Energy and Petroleum Regulatory Authority (EPRA) shows that the levies pushed up the prices of petroleum products by at least Ksh.95.71 for petrol alone, increasing the pump price of super petrol in Nairobi to Ksh.211.64 from a landing cost of Ksh.115.93.

For diesel, the charges increased by Ksh.83.36 per litre to Ksh.200.99 and Ksh.78.83 for kerosene to Ksh.202.61. The regulator says save for the levies, the landing costs of the three products are capped at Ksh.115.93 (super petrol), Ksh.117.63 (diesel) and Ksh.123.78 (kerosene). 

Data published on Friday after a night calculation by the EPRA, points to the existing 16 percent VAT on petroleum products, road maintenance levy (pushed petrol and diesel prices up by Ksh.18 per litre), and anti-adulteration levy that saw a litre of kerosene increase by Ksh.18 as the burden on fuel prices. 

Other taxes that increased the price of petroleum products prices on Friday include exercise duty, petroleum development levy (previously servicing controversial fuel subsidy), railway development levy and the import declaration fee. 

According to EPRA, oil marketing companies (OMC) would take home Ksh.12.39 per litre of petrol, and Ksh.12.6 per litre of diesel and kerosene, while petroleum development levy would gobble up at least Ksh.5.40 per litre for diesel and super petrol.

Further,  EPRA Director General Daniel Kiptoo says the year-on-year sustained free-falling shilling against the dollar made refined oil purchases expensive, absolving the government of any control mechanism for now.

“The average landed cost of imported Super Petrol increased by 4.80 percent from USD 739.21 per cubic metre in July 2023 to USD 774.67 per cubic metre in August 2023.

“Diesel increased by 12.52 percent from USD 701.99 per cubic metre to USD 789.89 per cubic metre while Kerosene increased by 19.79 percent from USD 690.58 per cubic metre to USD 827.26 per cubic metre,” Epra says adding that inflation also made it hard to lower the cost of fuel. 

Kenya’s inflation rate for August stood at 6.7 percent, down from 7.3 percent recorded in July.

According to data released by the Kenya National Bureau of Statistics (KNBS), the prices of food commodities reduced in August compared to July. The rise in fuel prices, however, is set to change this. 

The prices of cooking oil decreased by 1.2 percent, maize grains by 8.2 percent, fortified maize flour by 6.1 percent, beans by 1.3 percent, potatoes by 3.5 percent, and cabbages by 2.6 percent. 

However, the prices of sugar increased by 3.2 percent while mangoes increased by 6.1 percent. The new diesel prices could lead to an increase in the prices of food.