EPRA gives reasons why fuel dropped by 1 shilling.
The energy petroleum and regulatory authority, EPRA gives reasons why fuel dropped by 1 shilling.
In November 15, the regulatory authority explained that there was a drop in the landing cost of the fuel in the month of October.
Figuratively, EPRA pointed that the landing cost for super petrol dropped by 5.6 per cent from Ksh88,302 per cubic metre to Ksh83,355 per cubic metre.
EPRA stated,”Diesel decreased by 2.33% from Ksh107,461 per cubic metre to Ksh104,952 per cubic metre while Kerosene decreased by 9.08% from Ksh107,311 per cubic metre to Ksh 97,637 per cubic metre.”
However, in as much as the landing cost dropped, EPRA stated that the Kenyan shilling perfomed poorly compared to other currencies like the US dollar.
This means, commodities such as crude oil that was purchased in dollars, was still expensive.
EPRA stated,”Over the same period, the mean monthly US dollar to Kenya shilling exchange rate depreciated by 0.15% from Kshs.123.88 per US dollar in September 2022 to Kshs.124.06 per US dollar in October 2022.”
In an attempt to protect Kenyans, super pertol subsidies were introduced.
EPRA stated,”The price of Diesel has been cross-subsidized with that of Super Petrol while a subsidy of Kshs.17.68/litre has been maintained for Kerosene in order to cushion customers from otherwise high prices.”
“The Government will utilise the Petroleum Development Levy (PDL) to compensate oil marketing companies for the difference in cost,” EPRA added.
In Nairobi, a litre of Super petrol dropped from Ksh178 to Ksh177 whereas the cost of Diesel dropped from Ksh163 to Ksh161. Additionally, Kerosene dropped from Ksh146 to Ksh145.