The Energy and Petroleum Regulatory Authority (EPRA) has implemented new fuel price increases across all major petroleum products in its latest monthly review announced on Tuesday, January 14. The adjustments affect Super Petrol, Diesel, and Kerosene prices nationwide.
Under the new pricing structure, consumers will see the following increases:
– Super Petrol increases by Ksh0.29 per litre to retail at Ksh176.58
– Diesel sees a Ksh2.0 per litre rise to reach Ksh167.06
– Kerosene records the highest increase of Ksh3.0 per litre, reaching Ksh151.39
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In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, we have calculated the maximum retail prices of petroleum products, which will be in force from 15th January 2025 to 14th February 2025.^DC pic.twitter.com/DHRZVaITSt
— Energy and Petroleum Regulatory Authority (@EPRA_Ke) January 14, 2025
EPRA emphasized the legal basis for these prices in their statement:
“The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2025, the Tax Laws (Amendment) Act 2024, and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2000.”
Market Dynamics
The authority provided detailed insights into the landed cost variations that influenced the price adjustments:
“The average landed cost of imported Super Petrol decreased by 0.54% from 55612.93 per cubic metre in November 2024 to US$611.69 per cubic metre in December 2024; Diesel Increased by 0.06% from US$643.69 per cubic metre to US$654.10 per cubic metre while Kerosene decreased by 12% from US$660.30 per cubic metre to US$619.64 per cubic metre over the same period.”
Economic Context
The price increase comes amid several significant economic factors. Despite expectations that stable currency rates might prevent price increases, the adjustments were still implemented.
The Kenyan Shilling has maintained relative stability, trading at KSh 129.47 against the US dollar as of January 9, 2025. According to the Central Bank of Kenya (CBK),
“Concerns about inflation in advanced economies persisted during the week ending January 10, 2025. Inflation in the Euro Area increased to 2.4 per cent in December 2024 from 2.2 per cent in November signalling continued price pressures.”
Oil Market Conditions
While international oil prices have remained generally stable, Murban oil showed a slight uptick, reaching USD 77.75 (KSh10,066.29) per barrel as of January 9, 2025, according to CBK’s weekly bulletin.
The new fuel prices will remain in effect for 30 days, from Wednesday, January 15 to February 14, affecting transportation costs and potentially contributing to broader economic pressures on Kenyan consumers.
