EPRA's Latest Review Maintains Stable Fuel Prices
According to a statement by EPRA Director General Daniel Bargoria on Monday, the retail costs of petroleum products will remain steady from August 15 to September 14. The statement mentioned that during the assessment period, the maximum allowable prices for Super Petrol, Diesel, and Kerosene will remain unaltered. Bargoria emphasized the importance of shielding consumers from the surge in pump prices, which stems from elevated landed costs. Notably, the landed costs increased by 6.84% for Super Petrol, 4.29% for Diesel, and 7.41% for Kerosene.
Bargoria stated, "The purpose of the Petroleum Pricing Regulations is to establish a cap on retail prices for petroleum products already present in the country. This is done to ensure that importation and other reasonable expenses are covered while maintaining fair prices for consumers." As a result of this, Super Petrol will retain its price of Ksh.194 per liter, Diesel will remain at Ksh.179, and Kerosene will stay at Ksh.169. Without government subsidies, these prices would have been higher, with Super Petrol at Ksh.202, Diesel at Ksh.183, and Kerosene at Ksh.175.
These prices incorporate the 16% VAT increase outlined in the Finance Act 2023, which is up from the previous 8%. However, it's noteworthy that President William Ruto, in February 2023, made a commitment that his administration would not reintroduce subsidies on petroleum products. He argued that such subsidies were economically unsustainable and had been misused by his predecessor Uhuru Kenyatta to benefit a select few.
Ruto emphasized, "We will not revert to subsidies that ultimately favor intermediaries, organized groups, and politically aligned individuals. Instead, our focus will be on fostering domestic production."
Tags: Epra William Ruto Daniel Bargoria
