EPRA Cuts Fuel Prices by Sh4.37 per Litre in Preparation for Holiday Demand

EPRA has reduced fuel prices in Kenya by Sh4.37 per litre for petrol, Sh3 for diesel and kerosene, coinciding with the festive season. These price cuts follow a modest decline in international petrol prices and improved stability in the Kenyan Shilling against the US dollar. Although motorists benefit, public transport fares may still increase, highlighting concerns about pricing practices among service providers during peak travel times.

The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has implemented a significant reduction in fuel prices, aimed at providing financial relief to citizens in anticipation of the festive season. As the holiday period approaches, many motorists are preparing for increased travel, making this adjustment quite timely. From the latest updates issued by EPRA, petrol prices have decreased by Sh4.37 per litre, now priced at Sh176.29. Simultaneously, diesel prices have seen a reduction of Sh3 per litre, leading to a new retail price of Sh165.06, while kerosene has also dropped by Sh3 to Sh148.39.

This marks the most favorable pricing for petroleum products since April of the previous year, with the shift in prices related to a slight decrease in international petrol rates. It is noteworthy that, despite the reduction, global prices for diesel and kerosene have increased. Moreover, the exchange rate of the Kenyan Shilling against the US dollar has stabilized, currently standing at approximately Sh129, influencing the fuel pricing structure positively. Although motorists may gain from these price cuts, it is anticipated that public service vehicle (PSV) operators may increase fares during this busy travel period. Reports have emerged of fare hikes for journeys from Nairobi to rural areas, prompting reactions from the community.

Consumer advocate Stephen Mutoro has raised concerns regarding the inconsistency in pricing strategies, where companies tend to hastily increase prices due to rising operational costs but display reluctance in corresponding reductions when costs decrease. Since October of the previous year, fuel prices have plummeted by over Sh40 per litre, a trend attributed to a fall in crude oil prices, a robust Kenyan Shilling, and specific government subsidies linked to the petroleum development levy. Presently, the Kenyan Shilling’s stabilization at Sh129 to the dollar reflects a substantial improvement from rates observed in October and December 2022, facilitating lower procurement costs for importers. Although the recent fuel price reductions are favorable for consumers, they also highlight the need for fair pricing practices in the market.

The recent announcement by the Energy and Petroleum Regulatory Authority (EPRA) regarding the reduction in fuel prices comes at a crucial time for Kenyans as they prepare for the holiday season characterized by increased travel. Fuel prices are critical to many aspects of daily life, impacting transportation costs and essential goods. The fluctuations in fuel prices directly affect both consumers and service providers, creating a significant interest in the governing practices surrounding these changes and their implications for economic conditions in Kenya, particularly during festive periods.

In conclusion, EPRA’s announcement of lowered fuel prices is a welcome development for Kenyans, particularly as the festive season approaches. The adjustments reflect a decrease influenced by international market trends and a stable exchange rate. Nevertheless, there remains a concern regarding the potential for fare increases by public transport operators and the adherence of businesses to equitable pricing practices. As the nation moves forward, it will be essential to ensure that reductions in operational costs are adequately reflected in the prices charged to consumers.

Original Source: www.mwakilishi.com