Have you ever asked yourself why fuel prices keep changing?
Energy Petroleum Regulatory Authority (EPRA) checks and regulates fuel prices monthly and the new prices are effective as of the 15th of every month to the 14th of the next month. Over the last few days, the hottest topic in the country is the high fuel price unveiled by EPRA, which is a historic high surpassing the Kshs.130/litre mark. But have you ever asked yourself how this figure is achieved and what is taken into concern before the fuel price is decided? Below is a formula used by EPRA:
Cost of fuel prices = Product cost + Distribution & storage cost + Oil marketing companies cost + Taxes & levies.
Kenyans over the last few days have been wondering why the product cost of fuel when it reaches the port of Mombasa is relatively low yet at the filling station they pay almost double the cost. According, to the latest EPRA review a litre of petrol, diesel and kerosene at the port of Mombasa lands at Sh60.35, Sh53.88 and sh.54.44 respectively. This means that atleast Ksh.74 in petrol, Ksh. 62 in petrol and Kshs. 56 in kerosene goes to taxes. But what are these taxes?