Following the most recent maximum pump price review by EPRA, the cost of super gasoline, diesel, and kerosene is expected to decrease by an additional Ksh.1 per litre starting on Tuesday.
Lower landing costs of the fuel products in October support the Energy and Petroleum Regulatory Authority’s (EPRA) second consecutive Ksh. 1 decrease in fuel prices.
Diesel, kerosene, and super gasoline all saw drops in their landing costs of 5.6%, 2.3%, and 9.8%, respectively.
In the interim, the government has continued to provide diesel and kerosene fuel subsidies, keeping the prices of the two products in line with those of the current international market.
“To protect customers from otherwise excessive prices, the price of diesel has been cross-subsidized with that of Super Petrol while a subsidy of Ksh.17.68 per litre has been maintained for Kerosene,” EPRA said.
Following this, it is anticipated that super gasoline will cost Ksh.177.30 per litre in Nairobi, diesel will cost Ksh.162, and kerosene will cost Ksh.145.94 per litre.
Petrol consumers will have to pay more to subsidize the expense of diesel due to cross-subsidization.
Without the continued subsidies, diesel would be more expensive than super gasoline because of increased demand, particularly in Europe, which is putting pressure on diesel stock prices.
For example, the landed cost of diesel per cubic metre was Ksh. 107.164 ($863.81), while the petrol price was Ksh. 85,111 ($686.05).