Kenyan motorists will pay higher fuel prices as the Energy and Petroleum Regulatory Authority (EPRA) is set to raise margins for oil marketing firms, transporters, and retailers.
- •The adjustments, based on a newly concluded study by a consultant, will see petrol prices rise by KSh 7.80 per litre.
- •Retailers’ margins will increase by KSh 4.59 per liter, while wholesalers will see a KSh 1.64 per liter increase.
- •The expected increase has raised inflation concerns, as diesel powers much of Kenya’s transport and agriculture, while kerosene remains a key energy source for low-income households.
“It is important that we reflect the market realities of today in the price-regulated environment,” EPRA Director General Daniel Kiptoo said.
EPRA defended the move, citing the need to support oil marketers and transporters, whose margins had not been reviewed for years.
“Governments normally have medium-term plans which are five years, so again, because a lot of fundamental issues in the economy may change, that’s why it is important to review them after every five years,” Kiptoo added.
Transporters’ margins will rise by KSh 0.64 per liter, and a new finance surcharge of KSh 0.69 per liter will be introduced. Fuel transporters operating on a margin of KSh 0.54 per liter for distances under 40 kilometers will see their margin rise to KSh 1.18 per liter, while margins for longer distances will increase from KSh 11.98 to KSh 19.28 per kilometer.
“We are looking for a mechanism where we implement the recommendations of this report in phases. We want to time it at a point where it will not impact the consumer negatively, and we want to apply it at a time when we’re having petroleum prices come down,” Kiptoo said.
Fuel prices in Nairobi currently stand at KES 176.58 per liter for petrol, KES 167.06 for diesel, and KES 151.39 for kerosene. EPRA is set to announce the fuel prices for the next pricing cycle on Friday, 14 March.
