The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in fuel prices.

The prices of Super Petrol, Diesel and Kerosene were reduced by Ksh1 each.

As such, a litre of petrol will retail at Ksh206.36 while diesel will be valued at Ksh195.47 in Nairobi. Kerosene, on the other hand, will be sold at Ksh 93.23 for the next month.

"In the period under review, the maximum allowed petroleum pump price for Super Petrol, Diesel and Kerosene decrease by KShs.1.00 per litre respectively," read the statement in part

EPRA revealed that the new prices are inclusive of the 16 per cent Value Added Tax (VAT) as outlined by the Finance Act 2023, the Tax Laws (Amendment) Act 2020, and the revised rates for exercise duty adjusted for inflation.

The authority indicated that the price of diesel was cross-subsidised with that of Super Petrol while Kerosene was fully stabilised. 

"Oil Marketing Companies (OMCs) will be compensated for the under-recovery of costs from the Petroleum Development Levy (PDL) Fund," EPRA added.

"The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers."

Previously, Super Petrol retailed at Ksh207.36, Diesel at Ksh196.47, and Kerosene at Ksh194.23.

This comes as the Shilling continues to show signs of recovery after more than a year of downward spiral.

According to the Central Bank of Kenya, the US Dollar to Kenyan Shilling exchange rate stands at Ksh158.66.

CBK in a statement revealed that the Shilling had continued to stabilise, attributing the gain to favourable diaspora remittances and the thriving Tourism industry.