The Energy and Petroleum Regulatory Authority (EPRA) has announced that the prices of petrol and diesel will remain unchanged, while kerosene prices will drop by Sh3.43 per litre. This adjustment comes as a welcome relief to many Kenyan households that rely on kerosene for cooking and lighting, particularly in rural areas. The new fuel prices are effective starting midnight on Saturday, September 15, 2024, and will remain in force until October 14, 2024.
Petrol and Diesel Prices Unchanged
For Nairobi residents, the price of Super Petrol will stay at Sh188.84 per litre, while diesel will continue to retail at Sh171.60 per litre. These prices include a 16% Value Added Tax (VAT), in line with the provisions set out in the Finance Act 2023 and the Tax Laws (Amendment) Act 2020. The revised excise duty rates, which have been adjusted for inflation, are also factored into the final fuel prices.
This stability in petrol and diesel prices is largely a result of the global energy market dynamics. Daniel Kiptoo, the Director General of EPRA, noted in a statement that the average landed cost of imported Super Petrol decreased marginally by 1.53% from $708.47 per cubic metre in July 2024 to $697.62 per cubic metre in August 2024. Meanwhile, the cost of diesel decreased by 2.95%, from $693.82 to $673.36 per cubic metre.
However, despite the slight reductions in the landed costs of these fuels, the decision to keep petrol and diesel prices unchanged is likely influenced by other factors such as taxation and distribution costs. This leaves Kenyan motorists and businesses paying high prices for essential fuel products amid a broader economic climate of rising living costs.
Kerosene Price Relief
The most notable change in this month’s review is the decrease in the price of kerosene, which will now retail at Sh158.32 per litre in Nairobi, down from Sh161.75. This 5.30% reduction in the landed cost of kerosene from $705.74 to $668.34 per cubic metre has enabled EPRA to pass on the savings to consumers, offering much-needed relief to households that rely on kerosene for daily activities.
In Mombasa, kerosene will retail at Sh155.07 per litre, while Kisumu residents will pay Sh158.72 per litre. In Nakuru and Eldoret, the price of kerosene will be Sh157.91 and Sh158.73 per litre, respectively.
The price drop is especially beneficial for low-income households in rural and urban areas, where kerosene remains a key source of energy for cooking and lighting. It is hoped that this price reduction will alleviate some of the financial burdens faced by households already grappling with increased costs in other sectors, such as food and transportation.
Regional Price Breakdown
Fuel prices vary slightly across different regions due to transportation and distribution costs. In Mombasa, the price of petrol will be Sh185.66, diesel Sh168.43, and kerosene Sh155.07 per litre. Kisumu residents will pay Sh188.66 for petrol, Sh171.81 for diesel, and Sh158.72 for kerosene. In Nakuru, petrol will retail at Sh188.90, diesel at Sh171.04, and kerosene at Sh157.91. Lastly, in Eldoret, petrol will go for Sh188.67, diesel for Sh171.81, and kerosene for Sh158.73 per litre.
Impact on the Economy
Fuel prices in Kenya have a direct impact on various sectors, including transportation, agriculture, and manufacturing. Stable petrol and diesel prices are expected to offer some predictability for businesses and consumers, especially those involved in transport and logistics. However, the high cost of these essential fuels remains a concern for motorists and businesses that are feeling the strain of high fuel costs on their operations.
The drop in kerosene prices is a positive development, as it will lessen the financial burden on households that rely on this fuel for their energy needs. In particular, rural communities and urban informal settlements, where alternative energy sources are limited, stand to benefit the most from the decrease.
Conclusion
EPRA’s September fuel price review brings a mixed bag of relief and ongoing strain for Kenyan consumers. While petrol and diesel prices remain unchanged, the drop in kerosene prices offers some reprieve for low-income households. As fuel prices continue to play a critical role in shaping the broader economic landscape, many will be watching closely to see if future reviews will bring further adjustments to help ease the financial pressures faced by Kenyans.
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