The Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in pump prices effective immediately. The revision follows a presidential directive to slash Value Added Tax (VAT) on petroleum products from 13% to 8%.
According to the latest review, the price of Super Petrol has been reduced by Ksh. 9.37 per litre, while Diesel has dropped by Ksh. 10.21 per litre. In Nairobi, Super Petrol will now retail at Ksh. 197.60, with Diesel priced at Ksh. 196.63.
The announcement comes as a correction to a volatile 48-hour window for the energy sector. On April 14, EPRA had initially announced record-breaking price hikes, with Petrol and Diesel both surging past the Ksh. 206 mark.
Reports from economic analysts highlight that while the VAT cut is a win for the consumer, the landed cost remains precariously high. The average landed cost for Super Petrol jumped from US$582.11 to US$823.87 per cubic metre in a single cycle, indicating that global supply chain pressures remain the primary driver of local inflation.
The transport sector has reacted with cautious optimism. Following the initial price hike on April 14, many Matatu operators had already signaled a 25% increase in fares. While the Ksh. 10 reduction may stall further hikes, industry players are calling for more sustainable long-term measures beyond tax adjustments.
Notably, the price of Kerosene remains unchanged at Ksh. 152.78.
New Prices at a Glance (Nairobi)
- Super Petrol: Sh197.60 (Down from Sh206.97)
- Diesel: Sh196.63 (Down from Sh206.84)
- Kerosene: Sh152.78 (Unchanged)
The new prices will remain in effect until the next scheduled review on May 14, 2026. As the global oil market continues to fluctuate, all eyes remain on the National Treasury to see if the 8% VAT rate will remain a permanent fixture of the Finance Act.