NAIROBI, Kenya — The Motorists Association of Kenya (MAK) has demanded a comprehensive audit of the Energy and Petroleum Regulatory Authority’s (EPRA) fuel pricing formula following the latest fuel review that reduced petrol prices by only Sh0.22 per litre.
In a statement issued after EPRA announced new pump prices for the June 15 to July 14 pricing cycle, the motorists’ lobby described the reduction as inadequate and accused regulators of failing to pass on the benefits of declining global crude oil prices to Kenyan consumers.
Under the latest review, petrol prices in Nairobi fell marginally by Sh0.22 per litre to retail at Sh214.03, while diesel prices dropped by Sh10 to Sh222.86 per litre. Kerosene prices remained unchanged at Sh191.38 per litre. The government said it would spend approximately Sh10 billion from the Petroleum Development Levy Fund to cushion consumers from higher diesel and kerosene costs.
However, MAK argued that the pricing adjustments do not reflect prevailing international market conditions and raised concerns about the transparency of the formula used to determine pump prices.
“We express profound disappointment and outrage at the latest fuel price review announced by EPRA, which reduced the price of petrol by a mere Sh0.22 per litre and delivered the sly political promise of a Sh10 reduction in diesel prices outside the law,” the association said.
The organisation claimed Kenya’s fuel pricing system has become unpredictable and questioned whether current calculations are being applied consistently and independently.
According to MAK, government officials have frequently attributed previous fuel price increases to the Government-to-Government fuel import arrangement and global market volatility. The association argued that when international oil prices decline, consumers should equally benefit through meaningful reductions at the pump.
“Government officials defended those increases by citing the Government-to-Government fuel import arrangement. However, whenever global prices fall, the same authorities suddenly find reasons not to pass the savings to Kenyan consumers,” the statement added.
The lobby group warned that persistently high fuel prices continue to drive inflation across the economy by increasing transportation and production costs, which are ultimately passed on to consumers through higher prices for goods and services.
As part of its demands, MAK wants EPRA to publish all assumptions, calculations, and variables used in determining the latest fuel prices. The association is also calling on Parliament to examine the regulator’s independence and review whether the current pricing framework adequately protects consumers.
Energy Cabinet Secretary Opiyo Wandayi recently defended the current pricing framework, arguing that fuel prices are determined through a scientific process that takes into account international oil prices, taxes, levies, distribution costs, and industry sustainability.
He warned that sharp price reductions could undermine oil marketing companies and disrupt fuel supply chains.
