“The prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2020 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020,” said EPRA in a statement.
The petroleum regulatory authority notes that the new prices are as a result of an increase in the average landed cost of imported Super Petrol by 2.81% from US$805.14 per cubic metre in September 2023 to US$827.75 per cubic metre in October 2023.
At the same time, the average landed cost of Diesel increased by 3.28% from US$845.72 per cubic metre to US$873.42 per cubic metre while Kerosene decreased by 6.31% from US$868.70 per cubic metre to US$813.90 per cubic metre.
In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government says it has opted to stabilize pump prices for the November – December 2023 pricing cycle by compensating the oil marketing companies.
“The National Treasury has identified resources within the current resource envelope to compensate Oil Marketing Companies,” says EPRA.
Without the intervention to compensate the oil marketers, EPRA says Super Petrol would have retailed at Ksh.229.37 while Diesel and Kerosene would sell at Ksh.223.29 and Ksh206.70.