EPRA Maintains Petroleum Prices for August 2024

The August 2024 Price Freeze

In accordance with its mandate, EPRA announced in August 2024 that the maximum retail prices of Super Petrol, Diesel, and Kerosene would remain unchanged for the period from 15th August to 14th September 2024. This decision was based on a comprehensive assessment of various factors, including global crude oil prices, foreign exchange rates, and local market dynamics.

Factors Influencing Petroleum Prices

Several factors contribute to the fluctuations in petroleum prices, both globally and locally. These include:

• Global Crude Oil Prices: The price of crude oil, the primary raw material for petroleum products, is a major determinant of domestic prices. Global supply and demand dynamics, geopolitical events, and economic conditions influence crude oil prices.
• Foreign Exchange Rates: The Kenyan shilling’s exchange rate against the US dollar affects the cost of imported petroleum products. A weaker shilling can lead to higher domestic prices, while a stronger shilling can have the opposite effect.
• Local Market Dynamics: Factors such as refining capacity, storage facilities, and transportation costs within Kenya can also impact petroleum prices.

EPRA’s Pricing Methodology

EPRA employs a transparent and data-driven methodology to determine the maximum retail prices of petroleum products. This methodology takes into account the landed cost of petroleum products, taxes, and other relevant factors. EPRA regularly reviews and adjusts the pricing formula to reflect changes in the market.

The Impact of Price Stability

Maintaining stable petroleum prices is crucial for Kenya’s economy, as it affects the cost of transportation, manufacturing, and other sectors. Price stability can help mitigate inflationary pressures and support economic growth.

EPRA’s Role in Consumer Protection

EPRA also plays a vital role in protecting consumers by ensuring fair practices and preventing price gouging in the petroleum sector. The Authority monitors market trends, investigates complaints, and takes appropriate action to address any irregularities.

Looking Ahead: Future Trends in Petroleum Pricing

While EPRA has maintained price stability for the specified period, it’s important to note that global and local factors can influence future price trends. EPRA will continue to monitor the market and adjust pricing as necessary to ensure a fair and transparent pricing regime.

The Energy and Petroleum Regulatory Authority plays a crucial role in regulating the petroleum sector in Kenya. By setting and reviewing maximum retail prices, EPRA contributes to price stability, consumer protection, and a conducive business environment. As the Kenyan economy continues to evolve, EPRA will remain committed to ensuring a sustainable and efficient petroleum sector that benefits all stakeholders.

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