NAIROBI, Kenya — Rongo MP Paul Abuor has proposed amendments to the Petroleum Act 2019 aimed at making Kenya’s fuel pricing system more responsive to global market changes, particularly when international oil prices decline.
Addressing a press conference at Parliament Buildings on Monday, Abuor said the current pricing regime reacts swiftly to global price increases but is slow to pass on relief to consumers when costs fall.
“Fuel prices can rise rapidly during global disruptions, but when prices begin to fall, Kenyans often wait too long to benefit,” he said.
Under the existing framework, the Energy and Petroleum Regulatory Authority (EPRA) reviews and sets maximum pump prices every 30 days — a cycle the legislator argues creates a lag in reflecting downward price movements.
To address this, Abuor has proposed the introduction of an “emergency pricing period,” which could be declared by the Energy Cabinet Secretary in consultation with EPRA during times of heightened global volatility.
During such periods, fuel prices would be reviewed every 14 days instead of the standard monthly cycle, allowing faster adjustments in line with international trends.
The proposal also introduces a consumer-protection safeguard by barring mid-cycle price increases, meaning prices could only fall or remain unchanged within the emergency window.
“This is not price control. It is a timing improvement within the current system,” Abuor said, emphasising that the core pricing formula — including landed costs and stock levels — would remain intact.
He noted that fuel shipments typically take between 10 and 12 days to enter the domestic market, arguing that the current system delays the transmission of lower global prices to consumers.
“Once that fuel is in the system, is it fair to wait another 30 days for consumers to benefit?” he posed.
The proposed reforms come against the backdrop of continued volatility in global oil markets, driven by geopolitical tensions affecting supply chains.
EPRA currently publishes maximum retail prices for super petrol, diesel, and kerosene, which remain in force for 30 days, typically from the 15th of one month to the 14th of the next, to account for global price shifts and supply dynamics.
Abuor said his proposal seeks to strike a balance between consumer protection and industry stability, adding that safeguards have been built in to prevent financial strain on oil marketers or supply disruptions.
The proposal also enters a broader policy debate on fuel pricing, taxation, and cost-of-living pressures in Kenya. President William Samoei Ruto recently defended prevailing fuel prices, citing Kenya’s status as a lower middle-income economy and the role of fuel levies in financing infrastructure development.
According to the President, revenues from petroleum levies support the maintenance of over 20,000 kilometres of roads and the construction of an additional 6,000 kilometres nationwide.
Abuor said he has initiated consultations with the Ministry of Energy, EPRA, and industry stakeholders, including oil marketing companies, to refine the proposal before formal consideration in Parliament.
He expressed optimism that the amendment would attract bipartisan backing, describing it as a “balanced, practical solution” to cushion Kenyans amid fluctuating global oil prices.
