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EPRA announces reduction in Fuel Prices for December 2024

The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in the prices of Super Petrol, Kerosene, and Diesel, effective December 15, 2024. This decision, made public on Saturday, December 14, marks a significant drop in fuel prices, with the lowest pump rates seen in nearly two years.

In the latest fuel review, EPRA revealed that the maximum allowed pump prices for Super Petrol, Diesel, and Kerosene have decreased by Ksh4.37, Ksh3, and Ksh3 per litre, respectively. Following this adjustment, the new prices are set at Ksh176.29 for Super Petrol, Ksh165.06 for Diesel, and Ksh148.39 for Kerosene.

The regulator confirmed that these prices, which include a 16% Value Added Tax (VAT) in accordance with the Finance Act 2023 and the Tax Laws (Amendment) Act 2020, will remain in effect for 30 days, until January 14, 2025.

EPRA also noted a 4.46% decrease in the average landed cost of imported Super Petrol, dropping from Ksh82,721 per cubic metre in October to Ksh79,029 per cubic metre in November. In contrast, the average landed cost of imported Diesel rose by 5.76%, from Ksh78,524 to Ksh83,050 per cubic metre, while Kerosene saw a slight increase of 1.87%, from Ksh83,625 to Ksh85,193 per cubic metre during the same period.

The regulator explained that the petroleum pricing regulations aim to cap retail prices of petroleum products already in the country, ensuring that importation and other costs are recovered while keeping prices reasonable for consumers. “Currently, Kenya imports all its petroleum product requirements in refined form, with prices determined in international markets based on a pricing benchmark,” EPRA stated.

This announcement comes as welcome news for many Kenyans, who were bracing for potential price hikes amid rising global oil prices driven by ongoing geopolitical tensions in the Middle East and the Russia-Ukraine conflict. The Central Bank of Kenya (CBK) reported an increase in international oil prices, with Murban oil rising to $73.30 per barrel on December 11, 2024, up from $71.86 on December 5.

Kenyans can look forward to the benefits of these reduced fuel prices over the coming month, providing some relief amid fluctuating global oil markets.

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