The Energy and Petroleum Authority has reduced fuel prices by sh1.
In the latest review, the authority said, a liter of petrol will retail at Sh177.30 in Nairobi while a liter of diesel will retail at Sh162.00, with a subsidy being retained on kerosene.
In this case, it means a liter of kerosene will retail at Sh145.94 with the government maintaining a Sh17.68 subsidy on the commodity.
EPRA further noted that there was cross-subsidizing for super petrol and diesel, in that diesel users will pay a higher price to ensure petrol users have a lower price.
“The Government will utilize the Petroleum Development Levy (PDL) to compensate oil marketing companies for the difference in cost,” said EPRA.
The prices are inclusive of the 8 per cent Value Added Tax (VAT) in line with the provisions of the Finance Act 2018, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.
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The energy regulator explained that the landing cost for fuel commodities had decreased which enabled them to reduce the current prices by sh1.
The average landing cost of imported Super Petrol decreased by 5.60 per cent from USD726.77 per cubic meter in September 2022 to USD686.05 per cubic meter in October 2022.
Further, the landing cost of diesel decreased by 2.33 per cent from USD884.46 per cubic meter to USD863.81 per cubic meter while Kerosene decreased by 9.08 per cent from USD883.22 per cubic meter to USD803.06 per cubic meter.
“The Free On board (FOB) price of Murban crude oil lifted in October 2022 was posted at USD 98.06 per barrel a decrease of 7.46 per cent from USD 105.96 per barrel in September 2022,” EPRA said.
In Mombasa, a liter of petrol will retail at Sh174.98, diesel at Sh159.76 and kerosene at Sh143.69. For Kisumu, a liter of petrol will retail at Sh177.50, diesel at Sh162.70 and kerosene at Sh146.66.