This archive report was first published on 14 June 2020.
On June 14, 2020, the Energy and Petroleum Regulatory Authority (EPRA) announced changes in the pump prices of petrol, diesel, and kerosene in Kenya. The changes came as a result of shifts in the landed costs of the three products, which decreased for diesel and kerosene and rose for petrol.
According to EPRA Director General Pavel Oimeke, the average landed cost of super petrol increased by 31.54 percent from $188.7 per cubic meter in April to $248.21 per cubic meter in May 2020. In contrast, diesel increased by 5.58 percent from $242.13 per cubic meter to $228.62, while kerosene decreased by 51.84 percent from $262.44 per cubic meter to $126.39 per cubic meter.
The rise in petrol prices reverses three months of a steep drop in prices that saw the product sell Sh18 per litre cheaper in April. The marginal drop in diesel prices was attributed to lower demand as summer catches on and the need for heating falls in Europe and America, while kerosene lost demand due to the grounding of air travel.
The Sh13.30 difference between diesel and kerosene prices presents fears of fuel adulteration in the local market, as crooks who mix the two are attracted by the price margins between the two products. The Energy and Petroleum Regulatory Authority has been working to discourage the use of kerosene as an adulterant by introducing a Sh18 per litre adulteration levy on kerosene in September.
As a result of the changes, a litre of petrol will cost Sh89.10 per litre in the capital city, an increase from the current Sh83.33. Diesel will be sold at Sh74.57 per litre, while kerosene will retail at Sh62.46 per litre in Nairobi.
