The Energy and Petroleum Regulatory Authority (EPRA) has announced a major reduction in fuel prices, a move that brings much-needed relief to Kenyan consumers during the festive season. Effective December 15, 2024, to January 14, 2025, the new prices will see Super Petrol retail at Ksh 176.29 per litre, Diesel at Ksh 165.06 per litre, and Kerosene at Ksh 148.39 per litre.
This price adjustment marks a Ksh 4.37 per litre decrease for Super Petrol, while Diesel and Kerosene have each seen a reduction of Ksh 3 per litre. The reduction is attributed to a decline in the average landed cost of imported petroleum products, according to EPRA.
Fuel Costs Experience a Gradual Decline
The announcement comes after two months of price stagnation, during which petrol was retailing at Ksh 180 per litre. Prior to this period, the cost of petrol was significantly higher, peaking at Ksh 212.36 in January 2024. The latest reduction of Ksh 36 per litre since the start of the year is a testament to the government’s commitment to easing the financial burden on Kenyans, in line with its promises to reduce the cost of living.
EPRA revealed that the average landed cost of Super Petrol dropped by 4.46%, Diesel by 5.76%, and Kerosene by 1.87% compared to the previous month. This decline in international oil prices has allowed EPRA to pass the benefits on to consumers, resulting in a significant drop at the pump.
Timely Relief During Festive Season
The timing of this reduction could not be better, as Kenyans prepare for the Christmas and New Year holidays, a period characterized by increased travel and heightened economic activity. Fuel costs play a critical role in determining transportation expenses, and this adjustment is expected to make holiday travel more affordable for many families.
Transport operators, including matatus and bus companies, are likely to pass on the savings to passengers, potentially leading to a reduction in fares. For small businesses and industries reliant on diesel and kerosene, this move could also bring down operating costs, providing some respite in a challenging economic climate.
Addressing the Cost of Living
The reduction in fuel prices is part of the government’s broader strategy to address the high cost of living, which has been a pressing concern for many Kenyans throughout 2024. Rising inflation, coupled with increased taxes and the high cost of essential goods, has strained household budgets.
Fuel prices significantly impact the cost of goods and services, as transportation and energy costs form a substantial portion of production and delivery expenses. By reducing fuel prices, the government aims to alleviate some of this pressure, enabling consumers to spend more on other necessities during the holiday season.
Looking Ahead
The latest price review underscores the importance of global oil price trends in shaping local fuel costs. While the recent reductions are welcome, Kenyans will be watching closely to see if this downward trajectory continues in the coming months.
The government’s ability to maintain or further reduce fuel prices will depend on several factors, including international market dynamics, currency stability, and policy measures aimed at cushioning consumers from external shocks.
For now, the announcement provides a glimmer of hope for households and businesses struggling with the cost of living. As Kenyans fill their tanks and hit the road for the festive season, the reduced fuel prices serve as a small yet significant step towards economic relief.
EPRA’s commitment to transparent and timely adjustments in fuel prices will remain a critical factor in ensuring fair pricing and mitigating the impact of global oil market fluctuations on local consumers.
