Business

Gov’t announces another major drop in fuel prices

The Energy and Petroleum Regulatory Authority (EPRA) on Thursday, May 14 announced yet another major drop in fuel prices.

In the changes, prices for Super Petrol and Diesel reduced by Ksh 9.54 and Ksh19.9 respectively while Kerosene was increased by Ksh2.49.

The new retail prices will, therefore, be Ksh 83.33, Ksh 75.86 and Ksh 79.77 for Super Petrol, Diesel and Kerosene respectively in Nairobi.

A section of the Thika Superhighway at Survey Underpass
A section of the Thika Superhighway at Survey Underpass

The prices announced will be in force from Friday, May 15 to June 14.

In the period between April 15 and May 14, Super Petrol, Diesel and Kerosene retailed at Ksh92.87, Ksh97.56 and Kshs 77.28 respectively in Nairobi.

The relief came a day after EPRA rejected oil marketers and retailers’ proposal to hike the fuel prices.

The retailers had urged the government to base their indexes on the March crude oil prices which cost $35.58 (approximately Ksh3,727) a barrel, rather than $26.63 (approximately Ksh2,769) for April.

They argued that they were unable to offload 40% of the expensive fuel they purchased in March due to stringent Coronavirus restrictions such as the dusk-to-dawn curfew.

“The way fuel pricing is done in Kenya is guided by the law and not at anyone’s discretion. If they wanted any change in the approach, they would have to wait until when a new legal notice is being drafted to put in such conditions.

“The formula is even audited and EPRA cannot just change it due to some request from marketers,” Petroleum Principal Secretary Andrew Kamau stated.

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