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EPRA Drops Fuel Prices After VAT Cut, Petrol Drops By Sh9

The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in the pump prices for Super Petrol and diesel, following a revision of the Value Added Tax (VAT).

In its official statement, EPRA confirmed that Super Petrol will now retail at Sh197.60 per litre, while diesel will be priced at Sh196.63 per litre. This adjustment results in a decrease of Sh9.37 for Super Petrol and Sh10.21 for diesel in Nairobi, while the price of kerosene will remain unchanged.

The changes stem from Legal Notice No. 70, issued on April 15, 2026, which saw the Cabinet Secretary for the National Treasury lower the VAT from 13% to 8%. Consequently, EPRA recalculated the maximum retail pump prices, effective from April 16, 2026, to May 14, 2026.

Additionally, the subsidy on kerosene is bound to decrease from Sh108.10 per litre to Sh96.56 per litre. This adjustment follows EPRA’s earlier review for April-May 2026, during which the authority increased the maximum pump prices for Super Petrol and diesel by Sh28.69 and Sh40.30 per litre, respectively, leaving kerosene prices unchanged.

In that previous review, the prices in Nairobi were set at Sh206.97 for Super Petrol, Sh206.84 for diesel, and Sh152.78 for kerosene for the pricing cycle from April 15 to May 14, 2026. EPRA indicated that these prior prices reflected changes in landing costs and taxes, including a VAT adjustment from 16% to 13%, aimed at alleviating the burden of high international oil prices on consumers.

The government also plans to allocate approximately Sh6.2 billion from the Petroleum Development Levy Fund to help stabilize pump prices. Furthermore, EPRA noted that the pricing calculation excludes Super Petrol delivered by One Petroleum through the MT Paloma.

These changes occur against a backdrop of ongoing fluctuations in global oil prices, disruptions in fuel supply, and increased scrutiny of petroleum importation processes. Domestically, fuel pricing remains influenced by international benchmark prices, exchange rates, taxes and levies, as well as importation and distribution costs.

EPRA maintains that its pricing model is carefully designed to reflect market fundamentals while ensuring stability for consumers.

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