This archive report was first published on 15 May 2020.
On May 15, 2020, the Kenyan government announced a reduction in fuel prices in the latest price capping guide by the Energy and Petroleum Regulatory Authority (EPRA). The price of super petrol has been reduced by Sh9.54, while that of diesel has gone down by Sh19.19 per litre.
However, kerosene prices have increased by Sh2.49 per litre, affecting low-income households that rely on the fuel for lighting and cooking. A litre of kerosene will retail at Sh79.77 in Nairobi.
According to EPRA, the new prices have taken into account the changes effected by the Tax Laws (Amendment) Act of 2020, which made taxes and other levies part of the vatable amount in the calculation of Value Added Tax (VAT) for petroleum products.
EPRA also noted that no kerosene cargo was discharged at the Port of Mombasa for the period April 10 and May 9, resulting in the prevailing kerosene price being maintained but with adjustments in VAT calculations.
Other factors that may have slowed down the decline in fuel prices include a weak shilling and a crash in oil prices in the global market due to the COVID-19 pandemic.
