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The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in fuel prices for the period from April 15 to May 14, 2025.
According to the latest release, the price of Super Petrol will drop by Sh1.95 per litre, Diesel by Sh2.20 per litre, and Kerosene by Sh.2.40 per litre.
This adjustment means that in Nairobi, the new maximum retail prices per litre will be Sh174.63 for Super Petrol, Sh168.58 for Diesel, and Sh148.99 for Kerosene.
These prices include the 16% value-added tax and other levies outlined under the Finance Act 2023 and Tax Laws (Amendment) Act 2024.
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The decline in pump prices mirrors the drop in the average landed cost of imported petroleum.
In March 2025, the cost of Super Petrol fell by 4.89% from US$637.22 to US$606.06 per cubic meter.
Diesel saw an even steeper drop of 6.45%, down to US$636.75 from US$680.63, while Kerosene dropped 6.53% to US$628.22 from US$672.14.
Despite a relatively stable exchange rate of the US Dollar against the Kenyan Shilling, averaging Sh129.66 in March 2025, international petroleum prices have been on a downward trend.
For instance, Super Petrol in the international market dropped from US$737.02 in January to US$683.89 in March 2025. Diesel and Kerosene followed a similar trend.
A breakdown of local pricing indicates that taxes and levies still make up a substantial portion of the final price.
Taxes and levies add up to Sh80.85 for Super Petrol, Sh66.58 for Diesel, and Sh64.46 for Kerosene.
The breakdown of the cost of Super Petrol (PMS), Diesel (AGO), and Kerosene (DPK) in Nairobi for the period from April 15 to May 14, 2025, is as follows:
Landed Cost: The weighted average cost of imports for Super Petrol is Sh79.07 per litre, for Diesel it is Sh82.58 per litre, and for Kerosene, it is Sh81.39 per litre.
These costs cover the price of importing the products into the country.
Pipeline and Transport Costs: The transport cost of moving products through pipelines from the port to Nairobi is Sh2.79 per litre for both Super Petrol and Diesel.
For Kerosene, the same cost applies. Additionally, the cost of pipeline losses is listed as Sh0.68 for all products, ensuring efficient transport.
Storage and Distribution: For storage and distribution within Nairobi, the cost for Super Petrol is Sh 4.39 per litre, for Diesel it is Sh4.39, and for Kerosene it remains the same at Sh4.39 per litre. These costs account for warehousing and distribution logistics.
Importers Margin: The wholesale margin for the importers of these products is Sh5.52 for Super Petrol, Sh5.44 for Diesel, and Sh5.37 for Kerosene.
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These figures reflect the markup added by the importers before selling to dealers.
Dealers Margin:The retail investment and operating margin for dealers is Sh9.72 for each product: Super Petrol, Diesel, and Kerosene. This margin reflects the profit dealers make from selling the fuel.
Oil Marketing Companies (OMC) Margins: The oil marketing companies (OMC) have an additional margin of Sh15.24 for Super Petrol, Sh15.16 for Diesel, and Sh15.09 for Kerosene.
These margins are for the companies that manage the fuel distribution process.
Price Stabilization (Deficit/Surplus): For price stabilization, which accounts for fluctuating market conditions, there is a deficit of Sh4.66 for Super Petrol, Sh6.09 for Diesel, and Sh6.18 for Kerosene. This helps to stabilize price changes.
Taxes and Levies: Taxes and levies are a significant part of the final cost. The excise duty on Super Petrol is Sh21.95, for Diesel it is Sh11.37, and for Kerosene it is Sh11.57.
In addition, there are various other levies like the Road Maintenance Levy (Sh25.00), the Petroleum Development Levy (Sh 5.40), the Petroleum Regulatory Levy (Sh 0.75), Railway Development Levy (Sh 0.75), Anti-adulteration Levy (Sh 0.03), Merchant Shipping Levy (Sh0.03), and Import Declaration Fee (Sh 1.88).
Additionally, the VAT for each product is Sh24.08 for Super Petrol, Sh22.74 for Diesel, and Sh21.57 for Kerosene.
Final Retail Prices: After accounting for all costs, taxes, and margins, the retail prices in Nairobi will be as follows:
Super Petrol: KShs 174.63 per litre
Diesel: KShs 164.58 per litre
Kerosene: KShs 148.99 per litre