The Energy and Petroleum Regulatory Authority (EPRA) has announced a notable reduction in fuel prices in a strategic move to alleviate the financial burden on Kenyans during the festive season.
This adjustment comes at a crucial moment as many motorists prepare for increased travel during the upcoming Christmas and New Year holidays.
As of the latest pricing guidelines released on Saturday, the price of petrol has decreased by Sh4.37 per litre, bringing the new price to Sh176.29. Diesel and kerosene have also experienced price reductions, with diesel now retailing at Sh165.06 following a Sh3 per litre cut, and kerosene priced at Sh148.39, also reflecting a Sh3 decrease.
This marks the lowest retail prices for petroleum products since April of the previous year. The revision in prices is influenced by a modest decline in international petrol prices; however, it is important to note that global prices for diesel and kerosene have risen. Furthermore, the exchange rate of the Kenyan Shilling against the US dollar has stabilized at approximately Sh129, which has helped maintain consistent forex components within the fuel pricing structure.
Despite these welcomed price cuts for motorists, commuters may not benefit similarly, as public service vehicle (PSV) operators often raise fares during peak travel seasons. Early reports have indicated an increase in transport fares for travel from major urban centers such as Nairobi to rural regions. In light of October’s price adjustments from EPRA, there have been calls for manufacturers and transporters to translate these cost reductions into savings for consumers.
Consumer rights advocate Stephen Mutoro laments that while companies are quick to raise prices in response to rising operational costs, they tend to be slower to lower them when costs decline. The recent decline in fuel prices, which has fallen over Sh40 per litre since October of the previous year, is attributed to a reduction in crude oil prices, a strengthening of the Kenyan Shilling, and occasional government subsidies facilitated by the petroleum development levy.
The stability of the Kenyan Shilling, which currently trades at Sh129 to the US dollar, is a marked improvement from rates of Sh155 in October and Sh164 in December of the preceding year. This stabilization has enabled importers to incur lower costs in procuring petroleum products which contributes to the overall decrease in retail prices. While these price cuts represent a positive development for consumers, they bring to light the necessity for equitable pricing practices in the marketplace.
