The Energy and Petroleum Regulatory Authority (EPRA) has revealed a marginal reduction in fuel prices for the upcoming month. Effective from July 15 to August 14, consumers can expect slight decreases in the costs of petrol, diesel, and kerosene.
New Fuel Prices:
- Petrol: Reduced by Sh1 per litre
- Diesel: Reduced by Sh1.50 per litre
- Kerosene: Reduced by Sh1.30 per litre
These new rates reflect the incorporation of the 16% Value Added Tax (VAT) in accordance with the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised excise duty rates adjusted for inflation, as specified in Legal Notice No. 194 of 2020.
Price Breakdown:
- Super Petrol: Sh188.84 per litre in Nairobi
- Diesel: Sh171.60 per litre in Nairobi
- Kerosene: Sh161.75 per litre in Nairobi
Factors Influencing the Price Drop
The slight decrease in fuel prices is attributed to several key factors:
- Decrease in Average Landing Costs:
- Super Petrol: The average landing cost dropped by 4.65%, from US$750.95 per cubic metre in May 2024 to US$716.03 per cubic metre in June 2024.
- Diesel: The average landing cost saw a 1.19% reduction, from US$690.99 per cubic metre to US$682.73 per cubic metre.
- Slight Increase in Kerosene Costs:
- Despite the overall price reduction, the average landing cost of kerosene increased by 2.01%, from US$679.14 per cubic metre to US$692.80 per cubic metre.
Implications for Consumers
The marginal drop in fuel prices offers some relief to consumers, albeit limited. With the cost of living continuing to rise, any reduction in fuel prices can help ease the financial burden on households and businesses. The slight decrease in transportation and operational costs could potentially reflect on the prices of goods and services, offering a minor respite from inflationary pressures.
Future Outlook
As global oil prices and economic conditions remain volatile, future adjustments to fuel prices will depend on various factors, including international market trends, currency exchange rates, and domestic economic policies. EPRA will continue to monitor these dynamics closely and adjust fuel prices accordingly in their monthly reviews.
In conclusion, while the current reduction in fuel prices is modest, it represents a positive step towards managing the cost of living. Consumers are encouraged to stay informed about future price reviews and budget accordingly to navigate the fluctuating economic landscape.
