In Summary

  • EPRA announces reduction in fuel prices
  • The reduction is attributed to the strengthening shilling
  • The move is expected to stimulate economic activityand enhance consumer purchasing power

Reduction in fuel prices

The Energy and Petroleum Regulatory Authority (EPRA)  announces a significant reduction in fuel prices for the fifth consecutive month.

In Nairobi, the price of super petrol decreases by Sh7.21 per litre, reaching Sh199.

Meanwhile, the cost of diesel reduces by Sh5.09 per litre, bringing it down to Sh190.38.Kerosene retails at Sh188.74 per litre, marking a decrease of Sh4.49.

Why the reduction ?

This reduction is primarily attributed to  strengthen the shilling, which has experienced a notable improvement in recent weeks.

At the beginning of the year, the shilling stood at an all-time low of Sh160 but has since climbed to Sh137 this week.

EPRA utilizes rates provided by commercial banks for its price calculations, noting that the exchange rate averaged Sh148 to the dollar in February, a decline from Sh164 in January.

EPRA’s decision reflects the positive impact of the strengthening shilling on the fuel market.

This provides relief to consumers amidst economic challenges.

The consecutive months of price reductions indicate a favorable trend for motorists and households, potentially alleviating some financial burdens.

Expectations of the reduction

This move is expected to stimulate economic activity and enhance consumer purchasing power.This contributes to overall economic stability.

Furthermore, the reduction in fuel prices is likely to have ripple effects across various sectors, including transportation and manufacturing.

Lower fuel costs translate to decreased operating expenses.

This could potentially lead to lower prices for goods and services, benefiting consumers across the board.

Overall, EPRA’s proactive measures to adjust fuel prices in response to currency fluctuations demonstrate a commitment to ensuring fair and transparent pricing in the energy sector.

Additionally ,as the shilling continues to strengthen and market conditions evolve, EPRA remains vigilant in monitoring and adjusting fuel prices to reflect current realities and support economic growth.

 

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