EPRA Reduces Fuel Prices in Kenya Ahead of Festive Season

The Energy and Petroleum Regulatory Authority (EPRA) has reduced fuel prices, with petrol down by Sh4.37 to Sh176.29, diesel down by Sh3 to Sh165.06, and kerosene also down by Sh3 to Sh148.39. Although prices are the lowest since April, public transport fares may rise during the festive season, raising concerns about the equitable passing of savings to consumers.

The Energy and Petroleum Regulatory Authority (EPRA) of Kenya has officially announced a significant reduction in fuel prices, aiming to ease the financial pressures faced by citizens as the festive season approaches. As of the recent pricing update, petrol has dropped by Sh4.37 per litre, bringing its new price to Sh176.29. Diesel now retails at Sh165.06 after a Sh3 reduction, while kerosene is priced at Sh148.39, also reflecting a Sh3 decrease. This adjustment marks the lowest prices for fuel products since April of the previous year and coincides with a noted decline in international petrol prices.

Despite the positive impact on retail fuel costs, public service vehicle (PSV) operators may not extend similar benefits to commuters, as fare hikes during peak travel periods are common. Reports have indicated an increase in travel costs from major urban areas to rural destinations. This situation follows a broader debate regarding the responsibilities of manufacturers and transporters to pass on cost savings from reduced operational expenses to consumers. Consumer advocate Stephen Mutoro has pointed out the disparity between the quickness of price hikes in response to increased costs and the sluggishness in reducing prices when costs decrease.

The recent downturn in fuel prices can be attributed to a combination of factors, including weakened crude oil prices, a strengthening Kenyan Shilling, and temporary government subsidies. The Kenyan Shilling currently trades at around Sh129 to the US dollar, a significant improvement from higher rates seen in recent months. This exchange rate stability has allowed importers to enjoy lower costs for petroleum procurement, thereby contributing to decreased retail prices. However, the ongoing conversation around equitable pricing practices in the market remains pertinent.

The announcement from EPRA comes at a pivotal time as Kenyans prepare for the holiday season, traditionally marked by increased travel and associated fuel consumption. The price adjustments reflect external market factors, including fluctuations in international oil prices. Additionally, the stabilization of the Kenyan Shilling against the US dollar plays a crucial role in the pricing structure of fuel in the country. The discourse surrounding the passing on of cost savings to consumers is gaining momentum, particularly as the public feels the impact of rising transport fares in light of fuel price changes.

In conclusion, EPRA’s recent fuel price reductions provide a welcomed reprieve for motorists during the festive season, highlighting the influence of international market dynamics and local currency stability. However, the challenge remains for transport providers to align their fares with the new pricing structure to ensure consumers benefit equally. Furthermore, the need for a balanced approach in pricing practices continues to be emphasized by consumer rights advocates as the market navigates these changes.

Original Source: www.mwakilishi.com