The Energy and Petroleum Regulatory Authority (Epra) has announced an increase in the maximum retail price of Super Petrol by Sh2 per litre for the March 15 to April 14, 2023 pricing cycle.
The cost of a litre of super petrol will retail at Sh179.30, diesel (Sh162) and kerosene (Sh145.94) in Nairobi.
According to Epra, the price of diesel has been cross-subsidised with that of Super Petrol while a subsidy of Sh23.49 per litre has been maintained for kerosene in order to cushion consumers from high prices.
Cross-subsidization is when a marketer charges higher prices to a group of consumers in order to subsidise for another group.
In this case, it means petrol users will pay a higher price so as to afford diesel users a lower price.
“The Government will utilise the Petroleum Development Levy to compensate oil marketing companies for the difference in cost,” said Epra.
According to Epra, the prices are inclusive of the 8% Value Added Tax (VAT) and are in line with the provisions of the Finance Act 2018 and the Tax Laws (Amendment) Act 2020. The prices also take into account the revised rates for excise duty adjusted for inflation.
The rise in pump price comes at a time when inflation is on the rise.
In a press release, Epra Director General Daniel Kiptoo further explained that the average landed cost of imported Super Petrol decreased slightly by 0.06% from US$659.87 per cubic metre in January 2023 to US$659.47 per cubic metre in February 2023.
Kerosene decreased by 1.51 per cent from USD774.99 per cubic metre to USD763.28 per cubic metre.
During last month’s review, the cost of a litre of petrol retailed at Sh177.3 per litre, diesel Sh162 and kerosene Sh145.94 in Nairobi.
The new prices will be in force from March 15, 2023 to April 14, 2023.
Leave a Reply