The Energy and Petroleum Regulatory Authority (EPRA) on Tuesday, February 14, announced that the cost of fuel products in Kenya for February will remain unchanged. In the monthly review, the price of super petrol was maintained at Ksh177.3 per litre. Diesel and kerosene, on the other hand, will continue retailing at Ksh162 and Ksh145.95 per litre, respectively.
According to the statement by EPRA, the prices are inclusive of an eight percent value-added tax in line with the provisions of the Finance Act 2018. The average landing cost of super petrol decreased by 0.12% from December, while that of diesel and kerosene reduced by 4.76% and 5.1%, respectively.
The EPRA statement explained that the government only offered a subsidy for kerosene, while the costs of super petrol and diesel balanced each other out. Diesel has been cross-subsidized with petrol, and a subsidy of Ksh19.41 per litre maintained for kerosene to cushion consumers from the otherwise high prices. Oil marketing companies will receive compensation from the Petroleum Development Levy to offset the deficit.
In Mombasa, the cost of fuel is the lowest in the country. Motorists in the coastal city will pay Ksh174.98, Ksh159.76, and Ksh143 per litre for super petrol, diesel, and kerosene, respectively. In Kisumu, pump prices will be capped at Ksh177.5 per litre for petrol, Ksh162 per litre for diesel, and Ksh146.6 for kerosene.
Despite fears that the Kenyan shilling’s value drop against the dollar would cause a fuel cost spike, the decrease in the cost of a barrel of crude oil prices absorbed it. The price of a barrel of crude oil in the international market decreased to Ksh11,371 in January, down from Ksh11,700.
EPRA noted that fuel prices were not expected to change in March, given the stability in crude oil prices and the exchange rate. However, some oil marketing companies continue to disregard pricing regulations, and EPRA will continue monitoring the market to enforce the rules.
Energy and Petroleum Regulatory Authority Director-General, Daniel Kiptoo, advised Kenyans to buy their fuel from authorized dealers to avoid purchasing adulterated fuel that could cause engine damage. The Authority also urged consumers to report any illegal fuel dealings to the police. Mr. Kiptoo emphasized that the Authority would not hesitate to penalize any dealer found contravening the law.