Anxiety as EPRA Set to Announce New Fuel Prices Today

The Energy and Petroleum Regulatory Authority (EPRA) is set to announce new pump prices today, with oil marketers warning of a possible increase in petrol costs.

Kenya has maintained stable fuel prices for nearly two months despite pressure from the Iran–Israel conflict, but growing speculation over a price hike has triggered hoarding.

Industry players estimate that petrol prices could rise by about Sh37 per litre, while diesel may increase by as much as Sh70 per litre.

However, government intervention through the Fuel Stabilisation Fund could cushion consumers, even as the review reflects supply disruptions locally and volatility in global oil markets.

The current situation stems from the February 28 joint attack on Iran by Israel and the United States, followed by retaliatory strikes by Iran targeting Gulf states that supply Kenya under the government-to-government fuel deal.

The Strait of Hormuz, a critical passage for global oil shipments, has become a focal point after Donald Trump announced a naval blockade against Iranian-linked shipping, responding to Iran’s own blockade on a route that handles about 20 per cent of global oil supply.

Under the current March–April pricing cycle, Super Petrol, diesel and kerosene retail at Sh178.28, Sh166.54 and Sh152.78 per litre, respectively.

In the previous February–March cycle, EPRA reduced prices by Sh4.24 for petrol and Sh3.93 for diesel, with the rates retained in the latest review.

Speaking before the National Assembly Committee on Energy, Energy Cabinet Secretary Opiyo Wandayi signalled that consumers may soon face higher prices at the pump.

“Fuel prices are up worldwide, but I don't know if EPRA will increase or not. The truth of the matter is prices are high,” Wandayi said.

He attributed Kenya’s relatively higher fuel prices compared to neighbouring countries to the tax structure, noting that other countries impose lower fuel taxes.

Wandayi, whose ministry is under investigation over allegations of importing substandard fuel, has dismissed calls to resign, maintaining he will remain in office.