The Energy and Petroleum Regulatory Authority (EPRA) sets the retail prices of Diesel, Super Petrol, and Kerosene in Kenya under the Energy (Petroleum Pricing) Regulations, 2022.
Fuel prices are reviewed and announced by EPRA on the 14th of every month, with the revised prices taking effect from the 15th.
Currently, the retail prices in Nairobi are KSh178.28 for Super Petrol, KSh166.54 for Diesel, and KSh152.78 for Kerosene, effective at midnight for the next 30 days.
In other cities, Super Petrol, Diesel, and Kerosene will retail at KSh178.16, KSh166.76, and KSh153.03 per litre in Kisumu, KSh175.00, KSh163.26, and KSh149.49 per litre in Mombasa, and KSh178.16, KSh166.77, and KSh153.03 per litre in Eldoret, respectively.
What Determines Fuel Prices?
According to EPRA, the fuel pricing model is based on key cost drivers that determine the final pump price of petroleum products in Kenya.
These include global crude oil prices, which directly affect the cost of refined fuel, and exchange rate movements, especially the US dollar to Kenya shilling rate, which influences import costs.
The model also accounts for government taxes and levies, such as excise duty, the petroleum development levy, and the road maintenance levy.
In addition, costs related to freight and insurance for fuel imports through the Port of Mombasa are included, along with storage and distribution expenses from depots to retail stations.
Also Read: Global Oil Prices Decline as Kenyans Set Eyes on EPRA
EPRA further incorporates regulated margins for oil marketers and dealers to ensure fair pricing in the market.
A key element in the calculation is the weighted average cost of fuel cargoes imported and discharged at the Port of Mombasa between the 10th of the previous month and the 9th of the current pricing month.
The authority notes that these components are based on a Cost-of-Service Study, developed through detailed analysis and incorporating input from stakeholders and the public.
Also Read: EPRA Announces Fuel Prices for March and April Cycle
EPRA Retail Prices Formulae
The maximum retail price of super petrol, kerosene, and automotive diesel is calculated using the following formula:
Pr = Pw + Ts + Mri + Mro + VAT
Where:
- Pr is the maximum retail price of petroleum products
- Pw is the wholesale price
- Ts is the cost of transporting fuel from a secondary depot to a fuel station
- Mri is the retail investment margin (cost of setting up and investing in a fuel station)
- Mro is the retail operating margin (running costs of the fuel station)
- VAT is Value Added Tax
In simple terms, the retail price is the wholesale price plus transport costs, retail business costs, and taxes.
