Fuel prices remain unchanged as State spends Sh4.6bn to cushion motorists

A petrol station pump attendant prepares to fuel a car. /FILE‎Motorists will continue paying the same prices for petrol, diesel and kerosene for the next 30 days after the Energy and Petroleum Regulatory Authority retained pump prices despite an increase in the cost of imported fuel.

‎In its latest monthly review announced Saturday, Epra said the prices would remain unchanged from November 15 to December 14, 2026, with the government spending Sh4.6 billion from the Petroleum Development Levy Fund to shield consumers from higher international petroleum prices.

‎In Nairobi, a litre of Super Petrol will continue retailing at Sh226.96, diesel at Sh227.76 and kerosene at Sh219.87.

‎The prices include eight per cent Value Added Tax (VAT).

‎The latest decision means there will be no additional increase or reduction at the pump compared with the October 15 to November 14 pricing cycle.

‎However, the decision follows a sharp increase in fuel prices in the previous review, when Epra raised petrol by Sh12.93 per litre, diesel by Sh9.90 and kerosene by Sh28.49 in Nairobi.

‎The increases took effect on October 15, pushing petrol to Sh226.96, diesel to Sh227.76 and kerosene to Sh219.87, the same prices that will now apply for another month.

‎In its statement, Epra said the average landed cost of imported Super Petrol rose by 6.11 per cent, from US$977.55 per cubic metre in September to US$1,037.30 in October.

‎Diesel recorded a 6.73 per cent increase, from US$1,065.38 to US$1,137.09 per cubic metre, while kerosene rose by 0.71 per cent, from US$1,098.31 to US$1,106.11.

‎The regulator attributed the decision to retain pump prices to the government’s intervention through the Petroleum Development Levy Fund.

‎”The government has applied Sh4.6 billion from the Petroleum Development Levy Fund to stabilize the computed petroleum pump prices for the November-December 2026 cycle,” Epra said.

‎It added that without the intervention, the higher landed costs would have translated into increases of Sh8.58 per litre for petrol, Sh10.54 for diesel and Sh1.16 for kerosene.

‎The subsidy therefore prevented another round of increases at a time when international petroleum prices remained elevated.

‎The latest review comes against the backdrop of rising international petroleum prices, which have increased the cost of importing refined products into the country.

‎Epra said movements in the international petroleum market and the exchange rate are also key factors in determining local pump prices.

‎The US dollar traded at an average of Sh130.17 in October, compared with Sh129.91 in September, representing a slight weakening of the shilling against the dollar.

‎Kenya imports all its petroleum requirements in refined form, exposing local pump prices to changes in international market benchmarks and currency movements.

‎Data contained in Epra’s latest review showed that international Super Petrol prices declined from US$1,300.65 per metric tonne in September to US$1,187.08 in October.

‎Diesel prices also dropped from US$1,215.83 to US$1,142.17 per metric tonne, while kerosene increased slightly from US$1,253.50 to US$1,255.31.

‎Despite the mixed movements in international prices, the landed costs of all three products increased, reflecting the different components used in calculating the final import costs.

‎Epra said the petroleum pricing regulations are intended to cap retail prices of products already in the country, allowing importation and other prudently incurred costs to be recovered while protecting consumers from unreasonable prices.

‎”The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products which are already in the country so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers,” the authority said.

‎The regulator added that it remained committed to ensuring fair competition and protecting the interests of consumers and investors in the energy and petroleum sectors.

Surge in prices has once again pushed up the cost of transport, food and basic commodities, intensifying the economic pain.

“Those opposing the state want the levy removed so that we are unable to pay contractors."