The Energy and Petroleum Regulatory Authority (EPRA) has announced new prices for fuel commodities.
In its review, petrol, diesel, and kerosene will cost KSh 4.37, KSh 3 and KSh 3 less per litre, respectively.
In Nairobi, a litre of petrol will retail at KSh 176.29, kerosene at KSh 165.06 and diesel at KSh148.39 in Nairobi.
The prices are inclusive of the 16% Value Added Tax (VAT).
EPRA said the prices will be in force between December 15 and January 13, 2025.
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It attributed the downward prices' review to the changes in the landed costs at the international market.
According to EPRA, in between October and November, the average landed cost of imported petrol decreased by 4.46% from $641.14 per cubic metre to $612.53 per cubic metre.
Within the same period, diesel increased by 5.76% from $608.61 per cubic metre to $643.69 per cubic metre, while kerosene increased by 1.87% from $648.15 per cubic metre to $660.30 per cubic metre.
EPRA director general Daniel Kiptoo further linked the review to the dynamic relationship between the US dollar and the Kenyan shilling.
"The trade of petroleum products in the international markets is denominated in United States Dollars (USD), and an exchange rate is applied to convert the USD to KShs during the computation of local pump prices," he said.
Kiptoo added that the government would strive to stabilise the prices and see to it that neither the consumers nor the investors in the oil industry are exploited.
"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," he said.
The review would be a reprieve for Kenyans who continue to grapple with the high cost of living.
A few days back, a report from the Central Bank of Kenya (CBK) indicated that the prices of five food items would increase in December.
As detailed in the Agricultural Survey released on Tuesday, November 10, most of the food items will increase because of seasonality.
One of the most notable items listed in this category was tomatoes.
"Most respondents expect an increase in tomato prices as market supply is likely to be impacted by the October-December 2024 rain season," read the report in part.
"The expected increase in tomato prices is largely driven by seasonal factors as tomato supply tends to decline during the rainy season and increase when dry conditions set in."
Other food items set to become more expensive include beans, green grams, maize and cooking oil.
Conversely, prices of some food items have been projected to remain stable or decrease. The affected items include rice and milk.
This projection was attributed to the favourable weather conditions that have improved pasture in addition to the imports from Uganda.
