The Authority undertakes retail pricing of petroleum products (Diesel, Super Petrol and Kerosene) as stipulated in the Energy (Petroleum Pricing) Regulations, 2022.

The Pricing Regulations introduced a formula that EPRA uses in determining the maximum wholesale and retail pump prices of Super Petrol, Regular Petrol, Diesel and Kerosene (the Regulated Products) as follows:

The landed cost of petroleum products shall be determined as follows:

   Cl is the weighted average cost in Kenya shillings per litre of petroleum products imported through the G-to-G/OTS through a gazetted primary storage depot;

             Virp is the volume in litres of a cargo of petroleum product imported through the G-to-G/OTS and discharged at the port of Mombasa from the 10th day of the previous month to the 9th day of the pricing month;

             Cirp is the unit cost of a cargo of petroleum product imported through the G-to-G/OTS and discharged at the port of Mombasa from the 10th day of the previous month to the 9th day of the pricing month in Kenya Shillings per litre;

The maximum wholesale price of petroleum products in Kenya Shillings per litre shall be determined as the sum of the following

WHOLESALE PRICES

              Pw= Cl+ Jhc+Cp+ Lps+Pt-Lpt +Css + Lss+ Cf+ Mw+ Y + T + VAT

Where—

             Pw = the maximum wholesale price

Cl = the landed cost of imported petroleum products

             Jhc = the jetty handling costs

Cp = the primary storage costs

             Lps = the allowable losses on primary storage

             Pt = the primary transportation costs

             Lpt = the allowable losses on primary transport

             Css = the secondary storage costs

             Lss = the allowable losses on secondary storage

             Cf= the inventory financing costs

             Mw = the wholesale margin

Y = is any other prudently incurred cost approved by the Authority

             T = the applicable taxes (Excluding VAT)

Z – is any other prudently incurred cost approved by the Authority

VAT= Value Added Tax

RETAIL PRICES

For super petrol, kerosene and automotive diesel, the Pricing formula used is:

The maximum retail price of petroleum products shall be the sum of the following –

             Pr = Pw + Ts + Mri + Mro + VAT

Where –

              Pr is the maximum retail price of petroleum products

             Ts is the cost of transporting petroleum products from a secondary storage depot to a retail dispensing site.

             Mri is the retail margin corresponding to the investments associated with a benchmark retail dispensing site.

             Mro is the retail margin corresponding to the operating costs associated with a benchmark retail dispensing site.

The Authority may, by a notice in the Kenya Gazette, publish the Jhc, Cp, Pt, Cf, Lss, Lps, Ts, Css, x-factor, Kpt, Krd, Mri, Mro, Mw,   and the list of pricing towns from time to time.

The Authority may, by a notice in the Kenya Gazette introduce a new factor provided that such a factor is a verified prudent cost.

The retail and wholesale prices for Super Petrol, Automotive Diesel and Kerosene are published monthly on the 15th of every month.