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March 28, 2026
3h ago

How EPRA Calculates Fuel Prices

How EPRA Calculates Fuel Prices

At times, even when global prices fall, that is rarely translated into immediate pump cuts due to many factors, which range from levies to taxes, among many others...

✨ Key Highlights

Recent discussions in Kenya have focused on fuel prices, driven by global geopolitical events impacting oil imports. The Energy and Petroleum Regulatory Authority (EPRA) outlines the complex process determining the cost at the pump.

  • The final pump price is a sum of global oil costs, import/shipping fees, domestic transport, government taxes/levies, and regulated oil marketer margins.
  • Kenya primarily imports refined petroleum products, with prices significantly influenced by the global crude oil market and the fluctuating Kenyan shilling against the US dollar.
  • Key components influencing the landed cost by EPRA include shipping, insurance, and logistics, with recent figures showing petrol at Ksh75.42 per litre.
  • Taxes and levies, such as excise duty and VAT (currently 16%), represent a substantial portion of the final price.

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