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EPRA Announces Reduction in Fuel Prices Across Kenya

Overview of the New Fuel Pricing by EPRA

The Energy and Petroleum Regulatory Authority (EPRA) has issued a new directive effective from May 15, 2024, which brings a breath of relief to motorists and businesses across Kenya. For the duration lasting until June 14, 2024, the price of super petrol, diesel, and kerosene has been revised downwards. This decision comes after a detailed analysis of the average landed cost for importing these fuels, where a notable decrease has been observed, prompting the regulatory body to adjust the prices accordingly. This adjustment is not just a monetary figure alteration; it's a crucial economic lever that directly impacts the cost of living and business operations throughout the country.

Details of the New Fuel Prices

In Nairobi, the capital city, super petrol will now be sold at Sh192.84 per litre, diesel at Sh179.18, and kerosene at Sh168.76. Moving to the coastal city of Mombasa, consumers will purchase super petrol at Sh189.66, diesel at Sh176.01, and kerosene at Sh165.59. In Nakuru, the prices are set at Sh191.90 for super petrol, Sh178.62 for diesel, and Sh168.26 for kerosene. Further to the west in Eldoret, the costs are slightly higher with super petrol at Sh192.67, diesel at Sh179.39, and kerosene at Sh169.02. Kisumu, similarly, records prices close to those of Eldoret with super petrol at Sh192.66, diesel at Sh179.39, and kerosene at Sh169.01.

Implications of the Price Adjustment

The ripple effects of these new pricing adjustments are vast. For the average consumer, lower fuel prices mean reduced costs of commuting and transportation of goods, which can lead to a decrease in the price of commodities. For businesses, particularly those reliant on transportation like logistics, manufacturing, and distribution, the reduction in fuel costs can result in lower operational costs and potentially, an increase in profits or reinvestment opportunities. The economy at large stands to benefit as lower fuel prices can ease inflationary pressures, especially in sectors heavily dependent on fuel.

The Role of Landed Costs in Fuel Pricing

Landed costs of fuels play a pivotal role in determining the retail prices of petrol, diesel, and kerosene. These costs encompass expenses involved in purchasing, transporting, and off-loading the fuels at Kenyan ports. A decrease in these costs, typically influenced by global oil prices and transportation charges, allows EPRA to reduce local fuel prices. It's essential to note that such changes are aimed at maintaining a balance that does not undermine the operational continuity of importers while ensuring that consumers are not unduly burdened.

Looking Ahead: Predictions and Trends

While consumers and businesses enjoy the current reduction in fuel prices, it's crucial to stay informed about potential future changes. Fuel prices are highly volatile and depend on a multitude of factors including global political-economic stability, changes in exchange rates, and further fluctuations in global oil prices. Stakeholders are encouraged to monitor these trends and prepare for any adjustments. EPRA continues to play a crucial role in ensuring that fuel prices in Kenya are fair and reflective of true importation costs while supporting economic stability.

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