The retail price of petroleum products in Kenya has reduced driven by a strong shilling that gained 9.78% against the U.S. dollar.
In its monthly fuel pump price review, the Energy and Petroleum Regulatory Authority (EPRA) announced that the cost of a litre of super petrol would effective midnight reduce by Kshs 5.31, [a litre of] diesel would be cheaper by Kshs 10.00 while [a litre of] kerosene goes down by Kshs 18.68.
The reduction in pump price has been driven by a strong shilling that has been on a gaining streak against the dollar, strengthening from a low of Kshs 163 on 29th of January 2024 to today’s rate of Kshs 127.20.
During the month under review, the shilling gained from a low of Kshs 148.02 against the dollar to Kshs 133.54.
On the other hand, the cost of Murban Crude which is refined for use in Kenya has been on an increase, hitting a four-month high of US$90.24 today. This is up from an average of US$ 79.06 in March 2024, US$ 77.68 in February 2024 and US$ 83.32 in January 2024, according to data from the EPRA.
Due to a hike in the cost of Murban Crude in the international market, EPRA Director General Daniel Kiptoo says the land cost of super petrol increased 4.86% while that of diesel was flat. On the other hand, the landed cost of kerosene marginally reduced by 69 basis points.
VAT, excise duty and Road Maintenance Levy at Kshs 26.60, Kshs 21.95 and Kshs 18.00 per litre respectively of super petrol comprise the biggest junk of the Kshs 76.57 in government taxes and levies [on a litre of super petrol].
