Fuel Prices To Shoot Up Amidst Looming EPRA Monthly Review

According to the regulator, the decision is based on findings and recommendations from the second Cost of Service Study for the petroleum sector.

Viral Tea Ke Writer Viral Tea Ke Writer
Mar 12, 2025 - 22:25 Updated: Mar 12, 2025 - 22:26
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Fuel Prices To Shoot Up Amidst Looming EPRA Monthly Review
An AI-generated image of a petrol station. /CHATGPT.COM

Kenyan motorists could soon pay more in terms of the cost of fuel after the Energy and Petroleum Regulatory Authority (EPRA) announced plans to introduce additional charges on pump prices.

This adjustment aims to cover the rising costs incurred by oil marketing companies and fuel transporters in the country. According to the regulator, the decision is based on findings and recommendations from the second Cost of Service Study for the petroleum sector.

EPRA conducts a cost-of-service study for the petroleum and electricity sub-sectors every five years. The first study was carried out in 2018, and the recently concluded second study has led to recommendations for additional charges on petroleum products such as petrol and diesel.

The energy regulator revealed that these charges will ensure that fuel prices accurately reflect supply chain expenses. "It is important that we reflect the market realities of today in the price-regulated environment,” said EPRA Director General Daniel Kiptoo.

Energy and Petroleum Regulatory Authority (EPRA) Director General, Daniel Kiptoo speaking during the release of the State of Energy & Petroleum Sectors Financial Year 2023/2024 Statistics Report 2023/2024 Briefing in Nairobi on October 17, 2024. /EPRA

“Government usually has medium-term plans, so again, because a lot of fundamental issues in the economy may change, that’s why it’s important to review after every five years," EPRA Director of Economic Regulations, Dr. John Mutua, weighed in.

The 14-month study, which concluded in February this year, has received approval from policymakers and EPRA's board of directors.

Once implemented, the new measures will lead to an increase in the prices of super petrol, diesel, and kerosene. For example, the price of Super Petrol is set to rise by Ksh7.80 per liter, with the additional funds directed toward oil marketing companies and fuel transporters in the country.

"To use an example, we have transporters who have not had an increase since 2010, and it is today 2025—15 years. This is a question we need to ask ourselves as Kenyans: If those businesses close, it is your sister, a relative, a Kenyan who is going to lose a job, isn’t it?

"So, if we don’t do our role as a regulator to ensure we balance the interests of investors and consumers, tomorrow the question will be: where was the regulator when this business was shutting down or moving to other jurisdictions?" Kiptoo posed.

To lessen the financial burden on Kenyans, EPRA has stated that the implementation of these new charges will be carried out gradually.

"We are looking at a mechanism where we implement the recommendations of this report in phases. We want to time it at a point when it will not impact the consumer negatively, and we want to apply it when petroleum pump prices are coming down,” said Kiptoo.

“We are seeing international Platts prices, which are not within our control, starting to decrease, so we see an opportunity where we will be able to implement these recommendations—even though it’s a margin increase—without necessarily increasing pump prices.”

With the harsh economy in Kenya, the last thing Kenyans want is for fuel prices to go up further. Currently, in Nairobi, Super Petrol, Diesel and Kerosene retail at Ksh176.58, Ksh167.068 and Ksh151.39 ahead of the next monthly review set to be announced by EPRA on Friday, March 14.

In the previous month, EPRA increased the prices of Super Petrol, Diesel, and Kerosene by Ksh0.29, Ksh2.00 and Ksh3.00, respectively. Usually, the change in fuel prices is a ripple effect, with any increase in fuel prices triggering possible increases in the cost of matatu fares, food, transportation and power generation operational costs, which include the transportation and logistics sectors, which are vital for the distribution of goods across the country.

As Kenyans brace for these new fuel prices to take effect, there is growing demand for the government to implement measures to cushion vulnerable segments of the population from the adverse effects of the high cost of living.

Fuel watch: New fuel prices as announced by EPRA on February 14, 2025

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