This archive report was first published on 14 May 2020.
Kenya's fuel prices have dropped, bringing relief to motorists. The Energy and Petroleum Regulatory Authority (EPRA) announced the reduction in prices, which will take effect from midnight.
According to EPRA, the weighted average cost of imported refined petroleum products has been taken into account in the computation of the pump prices. The changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol decreases by Sh9.54 per litre, Diesel decreases by Sh19.19 per litre, and Kerosene increases by Sh2.49 per litre.
The new prices are a result of the Tax Laws (Amendment) Act of 2020, which made taxes and other levies part of the vatable amount in the calculation of VAT for petroleum products. EPRA explained that no Kerosene cargo was discharged at the port of Mombasa for the period April 10-May 9, and therefore the prevailing Kerosene price has been maintained but with the adjustments in VAT calculations.
Local users of diesel did not enjoy the major drop in crude oil prices after EPRA last month based the prices of diesel on the cost of crude oil in February, resulting in pump prices remaining high. However, EPRA had committed to using the lower prices of crude oil seen in March and April to determine diesel's pump prices for May, which has today been announced at Sh19.19 per litre lower.
Oil prices in March came down substantially as demand dropped with economies slowing down due to measures put in place to contain the spread of coronavirus. Prices tumbled from upward of Sh6,000 ($60) per barrel in January and Sh5,700 ($57) in February to about Sh3,000 ($30) in March and April.
SEE ALSO: Relief for battered motorists as pump prices drop
SEE ALSO: Major reprieve for kerosene users as price drops by Sh7
