EPRA Boss Reveals Key Factors That Will Determine Future Fuel Price Changes After Latest Hike

The Energy and Petroleum Regulatory Authority (EPRA) Director General Edward Kinyua has revealed the key factors that will determine future fuel price changes in Kenya, warning that motorists may continue experiencing monthly fluctuations as international oil prices and shipping costs change.

Speaking during an interview with Radio 47 on Thursday, October 22, Kinyua explained that Kenya’s reliance on imported refined petroleum products makes local fuel prices sensitive to developments in the global oil market, leaving the country exposed to rising import costs.

He cited the significant increase in crude oil prices since the beginning of the year, noting that the cost had risen from approximately $60 per barrel in January to about $108 at the time of his remarks.

He added that prices had climbed to around $157 per barrel during the height of the United States-Israel-Iran war, putting additional pressure on petroleum costs.

According to Kinyua, these changes directly influence the prices Kenyan motorists pay at petrol stations because EPRA relies on an established pricing formula that takes import costs into account.

“When the oil at the international market goes up, we also raise it. When it comes down, we reduce the prices,” he said, explaining why the regulator cannot keep pump prices unchanged when the cost of importing fuel increases.

His remarks come barely a week after EPRA announced a fresh increase in petroleum prices, adding pressure on motorists and households already dealing with the high cost of living.

In Nairobi, Super Petrol is retailing at Ksh226.96 per litre, while diesel costs Ksh227.76 and kerosene Ksh219.87. The latest review raised petrol by Ksh12.93 per litre, diesel by Ksh9.90 and kerosene by Ksh28.49.

The sharp increase has renewed attention on the factors behind Kenya’s fuel pricing system, particularly the extent to which international market movements affect consumers locally.

However, Kinyua maintained that government interventions had helped prevent prices from rising even further. He disclosed that the government had spent Ksh243 billion from the Petroleum Development Levy Fund since April this year to cushion Kenyans against the impact of higher fuel costs.

The government had also reduced Value Added Tax (VAT) on fuel from 16 per cent to eight per cent in an effort to moderate the financial burden on consumers.

“It means if there had not been these interventions, the price could have soared even higher,” Kinyua said.

His explanation suggests that future pump prices will depend largely on movements in international oil prices, shipping expenses and the costs factored into the country’s petroleum pricing formula.

While government interventions may help limit the impact on consumers, they do not eliminate Kenya’s exposure to global oil market fluctuations.

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