This archive report was first published on 15 October 2021.
On October 15, 2021, the Energy Petroleum and Regulatory Authority (Epra) announced a reduction in fuel prices in Kenya, marking the first decrease since June.
The move comes after state officials intervened to reinstate the fuel subsidy, which was dropped in September. The subsidy provides for a Ksh6.86 per litre subsidy on Diesel, Ksh6.13 per litre on Petrol, and Ksh4.63 on Kerosene.
According to Epra, the maximum allowed petroleum prices in Nairobi for super petrol and diesel decreased by Sh5 per litre, while kerosene decreased by Sh7.28 per litre. In Mombasa, the prices will be Ksh127.46 per litre of Petrol, Ksh108.36 for Diesel, and Ksh101.29 for Kerosene. In Kisumu, Petrol, Diesel, and Kerosene will cost Ksh130.12, Ksh111.3, and Sh104.26 respectively.
The high prices in September had sparked widespread public outrage, with top politicians and state officials taking notice ahead of the 2022 Elections.
Deputy President William Ruto accused cartels embedded in the Ministry of Petroleum of working with oil marketers to drive up costs, while ODM leader Raila Odinga had assured supporters that fuel prices would be reduced within a week.
The fuel subsidy is drawn from the Petroleum Development Levy, which was increased to Ksh5.40 a litre in July last year from Ksh0.40. The Treasury had exhausted Ksh31 billion allocated for the fuel subsidy after Ksh18.1 billion was diverted to the Standard Gauge Railway (SGR) operations under Chinese operators.
