Epra increases cost of super petrol in fuel prices changes

The cost of fuel has generally been reducing over the last year, with the cost of petrol going down from upwards of Sh200 seen at the start of last year to the current levels. [File, Standard]

The Energy and Petroleum Regulatory Authority (Epra) has increased the cost of super petrol by Sh2.69 per litre, reversing the declining trend in the cost of petrol seen in more than a year. This is even as it reduced the retail cost for diesel by Sh1.95 per litre and kerosene by Sh2.06 per litre.

This will result in super petrol retailing at Sh177.32 per litre in Nairobi for the next month, up from Sh174.63 per litre over the May-June pricing cycle.

Petrol prices have been on a downward trend for more than one year, save for January when they went up marginally by 29 cents.

Diesel will retail at Sh162.91 from Sh164.86 per litre in the capital, while kerosene will cost Sh146.93 from Sh148.99 a litre. The cost of the two fuels has also been on the decline for more than a year. They have, however, remained at the same levels over the three months to May this year.

At the same time, the energy sector regulator has removed subsidies on the three fuel products.

"In the period under review, the maximum allowed petroleum pump prices for super petrol increases by Sh2.69 per litre while diesel and kerosene decrease by Sh1.95 per litre and Sh2.06 per litre respectively," said Epra in a statement.

It attributed the changes to changes in landed cost, which is the price of fuel before other costs such as margins to OMCs, distribution costs and taxes and levies are factors into the price. The landed cost for super petrol went up 0.35 per cent, while that of diesel decreased by 2.42 per cent and kerosene decreased by 5.14 per cent.

Epra also scrapped the petroleum price stabilization or subsidies that are used to cushion motorists from high prices.

The scrapping of the fuel subsidy is in line with Kenya Kwanza's regime, which focuses on subsidising what it says are productive sectors, including agriculture, while doing away with consumption subsidies.

Over the May-June pricing cycle, the government subsidised super petrol pump price by Sh2.20 per litre. Sh2.73 per litre of kerosene and 28 cents per litre of diesel. Earlier in the April-May pricing cycle, it had cushioned motorists to the tune of Sh6 per litre of diesel and Sh4.66 per litre of super petrol.

The money used in cushioning motorists comes from the Petroleum Development Levy (PDL), where motorists pay Sh5.40 per litre of super petrol and diesel. This is then used to absorb sudden surges in pump prices.

The cost of fuel has generally been reducing over the last year, with the cost of petrol going down from upwards of Sh200 seen at the start of last year to the current levels.

The drop in petroleum costs drove up demand for fuel in 2024, which went up two per cent, according to the Economic Survey 2025, to 5.2 million tonnes.

The reduction in pump prices has been on account of different factors, including an economy that appears to be on the mend but also a decline in global oil prices as well as instances of government intervention through subsidising retail prices.