In accordance with Section 101(y) of the Petroleum Act 2019, Legal Notice No. 196 of 2010 and Legal Notice No. 26 of 2012, the Energy & Petroleum Regulatory Authority (EPRA) has calculated the maximum wholesale and retail prices of petroleum products which will be in force from 15th July 2020 to 14th August 2020.
Taking into account the weighted average cost of imported refined petroleum products, the changes in the maximum allowed petroleum pump prices in Nairobi are as follows: Super Petrol, Diesel and Kerosene increase by KShs 11.38 per litre, KShs 17.30 and KShs 2.98 per litre respectively.
The prices are inclusive of the revised rates for Petroleum Development Levy on Super Petrol and Diesel as per Legal Notice No. 124 of 10th July 2020 and 8% Value Added Tax (VAT)in line with the provisions of the Finance Act 2018 and the Tax Laws (Amendment)-Act 2020.
The changes in this month’s prices are as a result of the average landed cost of imported
Super Petrol increasing by 12.64% from US$ 248.21 per cubic metre in May 2020 to US$279.58 per cubic metre in June 2020 and Diesel increasing by 32.16% from US$ 228.62 per cubic metre to US$ 302.15 per cubic metre.
In the period under review, there was no Kerosene discharged at the Port of Mombasa. Accordingly, the prevailing Kerosene price has been maintained but adjusted for the under recovery of Value Added Tax by Oil Marketing Companies that occurred in the previous pricing cycle.
The Free On board (FOB) price of Murban crude oil lifted in June 2020 was posted at US$ 36.34 per barrel, an increase of 54.51% from US$ 23.52 per barrel in May 2020.
Over the same period, the mean monthly US Dollar to Kenya Shilling exchange rate appreciated by 0.16% from KShs. 106.65 per US$ in May 2020 to KShs. 106.48 per US$ in June 2020.