Kenyans Could See Lower Pump Prices As CS Mbadi Says Govt Saved Fuel Stabilisation Fund

Kenyans could see lower pump prices in the November–December fuel pricing cycle after Treasury Cabinet Secretary John Mbadi hinted that the government may use the fuel stabilisation fund to cushion consumers from high prices.

Speaking on Ramogi FM on Tuesday, November 3, Mbadi said the government deliberately avoided using the fund during the October review to preserve it for the next pricing cycle, raising hopes for relief at the pump.

He explained that global fuel prices could rise as European countries enter winter, a period when energy demand typically increases and often puts upward pressure on international crude oil prices.

The government is therefore keeping the fund available to help manage the expected pressure on pump prices and shield Kenyan consumers from sharp increases.

“Kenyans could see lower pump prices in the November–December cycle. We deliberately did not use the stabilisation fund in October so that we can have it for November,” Mbadi said during the Ramogi FM interview.

The CS noted that the fuel stabilisation mechanism is designed to smooth out fluctuations in pump prices by compensating oil marketing companies when global prices rise beyond certain thresholds.

During the last review by the Energy and Petroleum Regulatory Authority (EPRA) on October 14, pump prices remained unchanged despite global trends, as the government opted not to draw from the stabilisation fund.

Mbadi said the decision was strategic, as the government anticipates more volatility in the coming months due to increased heating demand in Europe and geopolitical tensions affecting oil supply.

He assured Kenyans that the government is monitoring global oil market trends closely and will intervene when necessary to ensure pump prices remain affordable.

The potential use of the stabilisation fund in the next review could offer relief to motorists, public transport operators, and households already grappling with high cost of living.

Fuel prices have a direct impact on the cost of transport, food, and other essential commodities, making any reduction significant for the economy.

Kenyans have been keenly following EPRA’s monthly reviews, with many calling for sustainable measures to lower fuel prices.

The Treasury CS said the government is also exploring long-term measures to stabilise fuel prices, including enhanced efficiency in fuel importation through the Government-to-Government arrangement.

The next fuel price review by EPRA is expected in mid-November, which will determine pump prices for the November 15 to December 14 cycle.

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