On Monday, October 14, the Energy and Petroleum Regulatory Authority (EPRA) released an updated review of fuel prices, including super petrol, kerosene, and diesel.

The most significant adjustment was an Ksh8.18 drop in the price of super petrol, lowering it from Ksh188.84 to Ksh180.66. Diesel prices also saw a reduction of Ksh3.54, from Ksh171.60 to Ksh168.06.

Meanwhile, Kerosene on the other hand, saw a modest decrease, with prices shifting from Ksh158.32 to Ksh151.39.

The energy regulator noted that these adjustments include the 16 percent Value Added Tax (VAT), in accordance with the Finance Act 2023 and the Tax Laws Amendment Act of 2020.

Additionally, EPRA reported a significant drop in the landed cost of imported super petrol, which decreased by 8.59%.

The price fell from KSh 90,013.91 (USD 697.62) per cubic metre in August to KSh 82,282.43 (USD 637.70) per cubic metre in September 2024.

The landed cost of diesel also saw a decline of 5.52%, dropping from KSh 86,883 (USD 673.36) per cubic metre to KSh 82,091.47 (USD 636.22) per cubic metre.

There had been anticipation of a decline in fuel prices, especially with the Kenyan shilling maintaining stability against the US dollar.

Recent exchange rates showed the shilling trading at 128.50/129.50 against the dollar, consistent with last Friday’s figures, according to data from the London Stock Exchange Group.

In the previous review in September, fuel prices remained unchanged despite a stronger shilling and a global reduction in oil demand.

The recent dip in fuel prices came shortly after the Central Bank of Kenya noted a global rise in oil prices during the week ending October 9.

Key factors to increase

This recent increase in the fuel was driven by a surge in demand and escalating tensions in the Middle East.

The cost of Murban oil climbed to USD 78.62 on October 9, up from USD 76.54 the previous week, raising concerns that this price jump might influence the new fuel price review.