The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in fuel prices causing a relief to motorists in Kenya.
EPRA’s monthly fuel update reveals a decrease in both petrol and diesel prices by Ksh.0.66 and Ksh.1.12 per liter, respectively. A liter of super petrol will now be sold at Ksh182.04 while diesel will be priced at Ksh.167.28.
The decrease in prices can be attributed to a drop in the average landed cost of imported super gasoline which went down by 1.09 percent from Ksh.101,216.60 per cubic metre in April to Ksh.100,117.8 cubic metre in May 2023.
The news is not entirely positive for all motorists though, as the price of kerosene has increased by Ksh0.35 to Ksh161.48 per liter.
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“Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol and Diesel decrease by Kshs.0.66 per litre and Kshs.1.12 per litre respectively while Kerosene increases by Kshs.0.35 per litre,”
EPRA said in a statement.
“The prices are inclusive of 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.”
The relief provided by the current reduction in fuel prices might however be short-lived. There is a possibility that fuel prices could increase again next month if the Finance Bill 2023 is passed, as it proposes to raise VAT on fuel products from 8 percent to 16 percent.
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