Government Slashes Fuel Prices

File image of a fuel attendant at work at a petrol station.
File image of a fuel attendant at work at a petrol station.
File

The Energy and Petroleum Regulatory Authority (EPRA) on Saturday, March 14, announced a significant drop in the price of fuel.

In the new declaration, the price of Super Petrol, Diesel and Kerosene decreased by Kshs 2.00 per litre, Kshs 2.80 per litre and Kshs 7.23 per litre respectively.

EPRA announced that the new changes will be effected starting March 15, 2020, to April 14, 2020.

The first page of the press release by EPRA dated March 14, 2020.
The first page of the press release by EPRA dated March 14, 2020.
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"In accordance with Section 101(y) of the Petroleum Act 2019, Legal Notice No.196 of 2010 and Legal Notice No. 26 of 2012, EPRA Kenya has calculated the maximum wholesale and retail prices of petroleum products, which will be in force from 15th March to 14th April 2020," the release reads.

The press release further announced that the changes in the prices are a consequence of the average landed costs of Super Petrol decreasing by 3.44% from USD489.44 per cubic meter in January 2020 to USD472.59 per cubic meter in February 2020.

EPRA further announced that the price of diesel decreased by 5.27% from USD506 per cubic meter to USD480.21 per cubic meter over the same period.

Kerosene recorded the biggest decrease by 14.96% from USD459.32 per cubic meter to USD421.24 per cubic meter.

EPRA further clarified that the changes in prices reflected January and February crude oil prices and that the more recent slump in the price of crude oil will be reflected in subsequent reviews.

"It is worthwhile noting that the cargoes used in the computation of this month's prices were procured in January and February 2020 when the crude oil prices were still high.

"Accordingly, the effect of the recent crash in crude oil prices will be reflected in the subsequent pump price reviews," the statement concluded.

Page 2 of the Press release by EPRA dated March 14, 2020.
Page 2 of the Press release by EPRA dated March 14, 2020.
File

Indications of fuel prices dropping were first seen after leading Oil Producing and Exporting Country (OPEC) Saudi Arabia and Russia, a non-OPEC leader fell out and kickstarted an oil price war in early March 2020.

According to the international benchmark, Brent, prices dipped by 25 percent to an average of at $33.90 a barrel as a result of the war.

 

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