Government Spends Sh4.6bn to Freeze Fuel Prices Despite Rising Import Costs

Date:

NAIROBI, Kenya – Motorists and households will pay unchanged prices for petrol, diesel and kerosene for another month after the Government injected Sh4.6 billion into the fuel stabilisation programme to cushion consumers against rising import costs.

The Energy and Petroleum Regulatory Authority (EPRA) announced on Saturday, November 14, that maximum retail pump prices will remain unchanged from November 15 to December 14, 2026.

In Nairobi, a litre of Super Petrol will continue retailing at Sh226.96, Diesel at Sh227.76 and Kerosene at Sh219.87.

The decision means consumers will avoid another round of increases despite higher costs of importing refined petroleum products into the country.

In its latest pricing statement, EPRA said the Government had applied Sh4.6 billion from the Petroleum Development Levy Fund to stabilise pump prices during the November-December review period.

Without the intervention, motorists would have faced increases of Sh8.58 per litre for Super Petrol, Sh10.54 for Diesel and Sh1.16 for Kerosene.

Diesel records biggest import cost increase

The price freeze comes despite an increase in the average landed cost of all three petroleum products between September and October.

EPRA reported that the landed cost of imported Super Petrol rose by 6.11 per cent, from US$977.55 to US$1,037.30 per cubic metre.

Diesel recorded the highest increase, with its average landed cost climbing by 6.73 per cent from US$1,065.38 to US$1,137.09 per cubic metre.

Kerosene costs also increased by 0.71 per cent, rising from US$1,098.31 to US$1,106.11 per cubic metre.

The landed cost represents the price of imported fuel delivered into the country and is among the key factors EPRA considers when calculating maximum retail prices.

The authority also takes into account other costs, including transportation, storage, distribution, taxes, levies and industry margins.

Prices remain high after October increases

The latest decision follows a sharp increase in fuel prices during the October review.

EPRA raised Super Petrol by Sh12.93 per litre, Diesel by Sh9.90 and Kerosene by Sh28.49 for the period running from October 15 to November 14.

The new review therefore maintains those higher prices rather than reversing the previous increases.

The prices are inclusive of Value Added Tax (VAT) at eight per cent, in line with the Government’s policy of cushioning consumers against high international petroleum prices.

EPRA sets maximum retail prices under Section 101(y) of the Petroleum Act, 2019, and Legal Notice No. 192 of 2022.

The regulations are intended to allow importers and other industry players to recover prudently incurred costs while protecting consumers from unreasonable pump prices.

EPRA Director General Edward Kinyua said the authority remained committed to promoting fair competition and protecting the interests of consumers and investors in the energy and petroleum sectors.

The new prices will apply across the country until December 14, when the next monthly review takes effect.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

spot_imgspot_img

Trending

More like this
Related

Nairobi County Officials Face Sentencing After Contempt Finding Over South C Construction

NAIROBI, Kenya - Two senior Nairobi County officials are...

Tesla Opens Cybercab Orders at $29,990 With Mandatory Monthly Subscription

Tesla has opened orders for its futuristic Cybercab, inviting...

PS Omollo Orders Action on Defilement, Bhang and Alcohol in Yatta

YATTA, Kenya- Principal Secretary for Internal Security and National...

Kitengela Caretaker Arrested After Tenant Killed Over Sh1,500 Rent

A disagreement over Sh1,500 in unpaid rent ended in...