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Pump prices to remain unchanged: Epra

 

The Energy and Petroleum Regulatory Authority (Epra) has kept fuel prices unchanged for the review period from April 15 to May 14.

This means that motorists in Nairobi will continue to pay Sh179.3 per litre of petrol, Sh162 for diesel and Sh145.94 for kerosene.

Those in Mombasa will continue to pay Sh176.98 for a litre of petrol, Sh159.76 for diesel and Sh143.69 for kerosene while those in Nakuru will pay Sh178.62, Sh161.83 and Sh145.79 for petrol, diesel and kerosene respectively.

The unchanged prices come even as the landed cost of petrol increased by 1.07 percent in March from February while that of diesel and kerosene dropped by 7.11 percent and 7.3 percent respectively.

However, the weakening of the Kenyan shilling against the US dollar wiped off any gains motorists would have hoped to gain from the drop in landed costs.

The mean monthly US dollar to Kenyan shilling exchange rate depreciated by 4.2 percent in March to Sh139.61 per US dollar from Sh133.98 in February.

“In the period under review, the maximum allowed petroleum pump prices of super petrol, diesel and kerosene remain unchanged,” said Epra Director-General Daniel Kiptoo, in a notice.

Review period

Epra continued to cross-subsidise the price of diesel with that of petrol, with motorists paying an additional Sh5.67 per litre for petrol to keep diesel price stable during the review period while a subsidy of Sh17.12 per litre has been applied on kerosene, said Mr Kiptoo.

“The free-on-board price of murban crude oil lifted in March 2023 was posted at $82.63 per barrel an increase of 3.15 per cent from $80.11 per barrel in February 2023,” added Mr Kiptoo.

This is the first time Kenyans will be consuming the fuel bought through the government-to-government deal between Kenya and the Gulf State for the supply of fuel on credit for nine months in a bid to reduce demand for US dollars amid a biting shortage in the market.

About 33 percent of Kenya’s forex demand is caused by pressures from oil marketers to pay for their cargo.

Kenya handed Abu Dhabi National Oil Company (ADNOC), Saudi Aramco and Emirates National Oil Company (ENOC) tenders to supply the country with petrol, diesel and kerosene for 270 days beginning this month.

Payment for the fuel will be done every six months.

A section of the public had expected that the deal would lead to lower fuel prices during the April – May fuel pricing cycle.

Deputy President Rigathi Gachagua, Energy Cabinet Secretary Davis Chirchir and other government officials on Wednesday received two ships - MT Front Capella and MT Norddolphin – carrying 165,000 metric tonnes of fuel at the Kipevu Oil Terminal in Mombasa.

The consignment including petrol, diesel and jet A-1 fuel used in the aviation industry has an estimated value of Sh20 billion.      BY DAILY NATION   

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