Anindita Chatterjee
The recent drop in fuel prices is a welcome relief for many Kenyans who have been grappling with rising costs. Effective October 15, 2024, the Energy and Petroleum Regulatory Authority (EPRA) announced a significant reduction in the prices of super petrol, diesel, and kerosene, giving consumers a much-needed break at the pump.
Details of the Price Reductions
In the latest monthly review, EPRA has set new retail prices as follows:
- Super Petrol: Reduced by Ksh8.18, now retailing at Ksh180.66 in Nairobi.
- Diesel: Decreased by Ksh3.54, now priced at Ksh168.06.
- Kerosene: Also dropped by Ksh6.93 to Ksh151.39.
These prices are applicable from October 15 to November 14, 2024, and include the 16 percent Value Added Tax (VAT) as per current legislation.
The decision comes after a notable decline in the average landed costs for these fuels. The prices for imported fuels fell due to multiple factors, including changes in international market rates and a stable exchange rate for the Kenyan shilling.
Market Changes and Expectations
EPRA reported that the average landed cost for super petrol decreased by 8.59 percent, falling from USD697.62 per cubic metre in August to USD637.70 in September. Similarly, the costs for diesel and kerosene also dropped, aiding the overall reduction in local retail prices:
- Diesel: Dropped by 5.52 percent, from USD673.36 to USD636.22.
- Kerosene: Decreased by 6.73 percent, from USD668.34 to USD623.39.
“The fluctuations in international oil prices have directly influenced our pricing strategy,” said EPRA in their statement. “We continually assess the market to ensure that the prices reflect global trends.”
Regional Price Variations
While the changes are significant, fuel prices vary across different regions. In Mombasa, for instance, consumers will see the following prices:
- Super Petrol: Ksh177.42
- Diesel: Ksh164.82
- Kerosene: Ksh148.15
In Kisumu, the prices will be slightly higher due to transport costs:
- Super Petrol: Ksh180.68
- Diesel: Ksh168.44
- Kerosene: Ksh151.82
Each region is subject to its logistical challenges, which explains the price discrepancies throughout the country.
Economic Context
This price adjustment arrives at a time when many predicted a decline in fuel costs, especially as the Kenyan shilling has remained stable against the US dollar. Currently, the exchange rate shows the shilling trading at around Ksh128.50/129.50 against the dollar.
With fuel being a considerable factor in the cost of living, this reduction provides a ray of hope for households and businesses. As fuel prices impact transportation and goods delivery, any decrease can potentially lead to lower costs in consumer goods.
Future Considerations
Looking ahead, the authorities emphasize the importance of monitoring global oil prices. Frequent reviews will be necessary to adjust local prices accordingly and keep up with market conditions.
“Consumers can expect EPRA to continue its role in maintaining fair pricing in the energy sector,” the authority noted. While it is difficult to predict future trends, the current stability is auspicious for Kenyans relying on fuel for their daily activities.
Conclusion
the recent reduction in fuel prices by Ksh8.18 for super petrol, Ksh3.54 for diesel, and Ksh6.93 for kerosene brings a much-needed relief amidst rising costs in other sectors. As Kenyans adapt to fluctuating market conditions, this price drop is a significant step towards easing financial burdens for many families and businesses across the country. With continued diligence, both consumers and regulators can navigate the complexities of the energy market together
