The Energy Petroleum and Regulatory Authority (EPRA) has revised prices of different petroleum products taking effect last night to mid-August.
EPRA has factored in KSh25 road maintenance levy in the latest review, pushing it by KSh7.Last week, the former CS Roads and Transport Kipchumba Murkomen said a review of the levy was overdue to enable regular maintenance of Kenya’s road network.Murkomen said Kenya’s road network has increased from 166,451 kilometres in 2016 to the current 239,122 kilometres, outgrowing the KSh18 provided for by the Road Maintenance Levy that has been in place for the last eight years.“As a country, we are grappling with a maintenance deficit of KSh78 billion this financial year alone. With the current trend, it is projected that by Financial Year 2028/2029, this financing gap will rise to KSh315 billion,” said former CS Kipchumba Murkomen, Ministry of Roads and Transport.
“Most of these abandoned roads are under the Low Volume Seal programme which have never been maintained in the last 10 years and are on the verge of being wiped away altogether. The Roads Maintenance Levy Review is, therefore, intended to fill this gap.”
The applicable retail prices in Nairobi for Super Petrol, Diesel and Kerosene are KSh188.84, KSh171.60 and KSh161.75, respectively. The changes are after EPRA’s reduction of KSh1.00 per litre, KSh1.50 per litre and KSh1.30 per litre respectively for Super Petrol, Diesel and Kerosene.
Currently, Kenya imports all its petroleum product requirements in refined form and the products are traded in international markets based on a pricing benchmark provided by S&P Global Platts. The trade of petroleum products in the international markets is denominated in United States Dollars (USD), and an exchange rate is applied to convert the USD to KSh during the computation of local pump prices.
A trend of the USD to Kenya Shilling exchange rate from the start of this year shows a downward trend exchanging at KSh164.42, KSh148.02, KSh133.54, KSh134.63, KSh132.72 and KSh129.06 in January, February, March, April, May and June respectively.
“The average landed cost of imported Super Petrol decreased by 4.65 per cent from US$ 750.95 per cubic metre in May 2024 to US$ 716.03 per cubic metre in June 2024. Diesel decreased by 1.19 per cent from US$ 690.99 per cubic metre to US$ 682.73 per cubic metre while Kerosene increased by 2.01 per cent from US$ 679.14 per cubic metre to US$ 692.80 per cubic metre,” said Daniel Bargoria, Director General, Energy Petroleum and Regulatory Authority.
“The prices are inclusive of the 16 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation.”
See Also:
Kenya Keen Not to Raise Cost of Living via Road Maintenance Levy – Murkomen
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