Road maintenance levy up as fuel prices reduce in EPRA's July review

Business
By Denis Omondi | Jul 14, 2024
A car getting refuelled. [Elvis Ogina, Standard]

The Energy and Petroleum Regulation Authority (EPRA), has reduced the pump prices for major petroleum products in its July review.

Super Petrol, Diesel and Kerosene will retail at Sh 188.84, Sh 171.60, and Sh 161.75 starting midnight today following a reduction of Sh 1, Sh 1.50, and Sh 1.30 respectively.

According to EPRA, the landed costs for Super Petrol and Diesel reduced in June while that of Kerosene increased slightly hence the price reductions in the latest review.

The shilling also strengthened against the dollar to exchange at the rate of Sh 129 in June compared to Sh 132 in May leading to a further reprieve.

"The average landed cost of imported Super Petrol decreased by 4.65% from $750.95 per cubic metre in May 2024 to $716.03 per cubic metre in June 2024, Diesel decreased by 1.19% from $690.99 per cubic metre to $682.73 per cubic metre while Kerosene increased by 2.01% from US$679.14 per cubic metre to $692.80 per cubic metre," says EPRA in a statement.

However, the energy sector regulator has increased the Road Maintenance Levy from Sh 18 in the June-July cycle to Sh 25 despite earlier indication from former Transport CS Kipchumba Murkomen that it would likely remain unchanged.

"As suggested by Kenyans, we will only make this decision when we are certain that any revenue measures adopted will not result in a rise in the cost of living," said Murkomen in his statement dated July 8.

According to the government, there is a Sh 78 billion deficit for road maintenance in the 2024/2025 financial year which needs to be raised through the levy.

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