PUMP PRICES

Fuel prices remain unchanged despite drop in landed cost

EPRA retained pump prices for petroleum products in this month's review.

In Summary

•A litre of petrol will retail at Sh129.72 in Nairobi.

•Kerosene to continue retailing at Sh103.54 per litre.

An attendant fuelling a car.
An attendant fuelling a car.
Image: FILE

Fuel prices will remain the same in this month's review.

A litre of petrol will retail at Sh129.72 in Nairobi, while diesel to go for Sh110.60 per litre. Kerosene to continue retailing at Sh103.54 per litre.

The Energy and Petroleum Regulatory Authority (EPRA) has retained pump prices for petroleum products despite a drop in the landed cost.

The landed cost of imported Super petrol decreased by 4.1 per cent from $627.80 (Sh71,206) per cubic metre in November to $601.97 (Sh68,276) in December.

Diesel decreased by 5.71 per cent from $600.22 (Sh68,078) to $565.92 per cubic metre, while kerosene decreased by 4.89 per cent to $574.85 (Sh65,194) per cubic metre.

EPRA director general Daniel Kiptoo said the government will utilise the Petroleum Development Levy to cushion consumers "from the otherwise high prices."

"The prices are inclusive of eight per cent VAT in line with provisions with the Finance Act and the revised rates of excise duty adjusted for inflation," Kiptoo said.

This comes amid concerns by Oil Marketing Companies over government defaulting on compensation under its fuel subsidy initiative introduced mid-last year.

In November, the Energy and Petroleum Regulatory Authority cut margins for the oil marketers to keep pump prices unchanged, after a public outcry on rising pump prices.

Billions of shillings, however, remain unpaid, leaving OMCs’ cash flow dented.

They now want the government to pay interest on the delayed funds, a cost that will be passed to taxpayers.

According to a local daily, oil dealers were paid Sh1.6 billion for two shipments in November-December while two others are pending.

In December, prices also remained unchanged despite the then increase in crude oil costs, owing to the State subsidy that consumers have been enjoying.

Edited by Mercy Asamba