NAIROBI, Kenya – Motorists should expect fuel prices to remain sensitive to global oil market movements, Energy and Petroleum Regulatory Authority (EPRA) Director General Edward Kinyua has said, warning that changes in international crude oil prices and shipping costs can influence the cost of fuel at Kenyan petrol stations.
Speaking during an interview with Radio 47 on Thursday, October 22, Kinyua said Kenya’s reliance on imported refined petroleum products exposes consumers to fluctuations in the international market.
He explained that EPRA’s monthly pricing formula takes into account the costs incurred in purchasing petroleum products abroad and transporting them to Kenya, meaning local prices can rise or fall depending on changes in import costs.
“When the oil at the international market goes up, we also raise it. When it comes down, we reduce the prices,” Kinyua said.
His remarks come a week after EPRA increased the maximum retail price of Super Petrol by Sh12.93 per litre, diesel by Sh9.90 and kerosene by Sh28.49 in its October 15 to November 14 pricing cycle.
Why fuel prices are under pressure
Kinyua pointed to rising global oil prices, saying crude oil had climbed to about $108 per barrel, compared with approximately $60 at the beginning of the year.
He also cited a peak of about $157 per barrel during the height of the conflict involving the United States, Israel and Iran, which he said had put additional pressure on fuel costs.
The latest price increase followed a rise in the cost of importing refined petroleum products. EPRA’s figures showed that the average landed cost of imported Super Petrol increased by 11.81 per cent, from $874.26 per cubic metre in August to $977.55 in September.
Diesel’s average landed cost rose by 11.32 per cent, from $957.05 to $1,065.38 per cubic metre, while kerosene increased by 9.41 per cent, from $1,003.87 to $1,098.31 per cubic metre.
The landed cost covers the expenses associated with getting imported petroleum products to Kenya, including purchasing and transportation costs. These expenses feed into the formula used to determine the maximum prices retailers can charge.
What motorists are paying
Under the current pricing cycle, motorists in Nairobi are paying a maximum of Sh226.96 per litre for Super Petrol, Sh227.76 for diesel and Sh219.87 for kerosene.
The prices took effect on October 15 and are scheduled to remain in force until November 14, unless a subsequent review changes the rates.
The latest increases have renewed concerns over the cost of living because fuel prices affect more than motorists. Higher diesel costs can increase the expense of transporting food and other goods, while kerosene price increases place additional pressure on households that rely on it for cooking and lighting.
Government measures to cushion consumers
Kinyua said government interventions had helped prevent pump prices from rising even further.
He cited the reduction of Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent, a measure intended to cushion consumers against elevated international prices.
The government has also used fuel-price stabilisation measures to moderate increases. However, EPRA indicated during its October price review that it would not introduce stabilisation for that pricing cycle, citing the need to preserve resources for possible future price shocks.
Kinyua said the government had spent Sh243 billion from the Petroleum Development Levy Fund since April to cushion Kenyans against rising fuel prices. That figure was not independently confirmed in the sources reviewed and should be verified against official Treasury or EPRA records before publication.
Why Kenya remains exposed to global oil prices
Kenya stopped refining fuel locally in 2013 and now relies on imported refined petroleum products, leaving domestic prices vulnerable to international market changes.
Kinyua said EPRA follows the regulated pricing framework, which requires the costs passed on to consumers to be reasonable and justified. The regulator’s monthly reviews are designed to reflect the cost of importing petroleum products rather than arbitrarily setting prices without regard to those expenses.
