EPRA increases fuel prices for January-February 2025 period

The Energy and Petroleum Regulatory Authority (EPRA) has announced new maximum retail prices for petroleum products, effective from 15th January to 14th February 2025.

This adjustment complies with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022.

In the latest review, pump prices for Super Petrol, Diesel, and Kerosene have increased by Sh0.29, Sh2.00, and Sh3.00 per litre respectively.

In Nairobi, Super Petrol, Diesel & Kerosene will retail at Sh176.58, Sh167.06 & Sh151.39 respectively effective midnight.

These prices include the 16% Value Added Tax (VAT) in line with the Finance Act 2023 and the revised excise duty adjusted for inflation.

At the foundation of the pricing structure is the landed cost, which reflects the weighted average expense of importing refined petroleum products. 

Super Petrol’s landed cost stands at Sh79.27 per litre, Diesel at Sh84.00 per litre, and Kerosene at Sh84.40 per litre. These prices form the basis of the final pump prices, which are adjusted to include storage, distribution, margins, and levies.

Distribution and storage costs further add to the retail prices. Pipeline transport from Mombasa to Nairobi accounts for Sh2.79 per litre for all fuel types. 

Additional costs include delivery to retail stations within Nairobi, priced at Sh0.54 per litre, bringing the total storage and distribution costs to Sh4.01 for Super Petrol, Sh3.72 for Diesel, and Sh3.69 for Kerosene.

Margins for both importers and dealers significantly influence the final price. Importers’ margins are set at Sh4.20 per litre for Super Petrol and Sh4.17 per litre for Diesel and Kerosene. Dealers, who manage retail investments and operations, are allocated a margin of Sh8.19 per litre across all products.

A substantial portion of the final retail prices comprises taxes and levies, which include excise duty, the road maintenance levy, and VAT. For Super Petrol, excise duty is charged at Sh21.95 per litre, with Diesel and Kerosene taxed at Sh11.37 per litre. 

The road maintenance levy stands at Sh25.00 per litre for Super Petrol and Diesel, while Kerosene is exempt. Additionally, VAT contributes Sh24.36 per litre for Super Petrol, Sh23.04 for Diesel, and Sh20.88 for Kerosene. 

Altogether, taxes and levies amount to Sh80.91 per litre for Super Petrol, Sh69.20 for Diesel, and Sh55.09 for Kerosene.

The cumulative calculations result in the final retail prices for Nairobi consumers: Sh176.58 per litre for Super Petrol, Sh167.06 for Diesel, and Sh151.39 for Kerosene.