The Energy and Petroleum Regulatory Authority (EPRA) has warned that fuel prices will rise on Friday, February 14, 2025, unless the government approves stabilisation. EPRA director-general Daniel Kiptoo said Kenyans should brace for increased fuel prices. Why EPRA warned of higher fuel prices EPRA director-general Daniel Kiptoo cited the January spike in global crude oil prices. While computing new petrol, kerosene and fuel prices, the regulator considers changes in the price of oil globally, exchange rate fluctuations and other market dynamics, including geopolitical factors. “We did have a bit of a spike in international prices sometime in early January and it’s because of certain geopolitical factors, some sanctions were put on Russian products by the outgoing United States (US) administration, but those sanctions have not been lifted. That led to a bit of a jump in the flat price,” Kiptoo revealed, as quoted by Citizen TV.
Kiptoo disclosed that EPRA will consult the government on stabilising the prices to cushion consumers at the pump. “We are having our commutations going on today, hopefully, once we can ascertain where the prices are going we will be able also to consult the government, and then make a decision on whether we are going to apply stabilisation or not. But we are still computing and hopefully we will be able to land at a place where consumers are comfortable.” Why Kenyans are paying high prices for fuel FX Pesa lead market analyst Rufas Kamau explained that several taxes imposed by the government led to an increase in fuel costs, with petrol levies amounting to KSh 80. “The biggest tax on fuel is VAT. Excise duty is second. Heavy taxes on petrol impact production directly and they lead to lower economic production,” he said. Kamau noted that prices would be affordable if the government cuts taxes and levies.
“Petrol is a base product in Kenya’s production cycle similar to labour, land, and capital. Lowering such taxes would lead to increased consumption since people would have more money to spend on other items which would lead to an increase in production,” he recommended. What are fuel prices in Kenya? On Tuesday, January 14, EPRA announced an increase in the maximum retail prices for petroleum products from January 15, 2025, to February 14, 2025. The retail prices in Nairobi are KSh 176.58 for super petrol, KSh 167.06 for diesel, and KSh 151.39 for kerosene. EPRA noted changes in international fuel prices, with super petrol’s cost dropping by 0.14%, diesel increasing by 0.06%, and kerosene decreasing by 1.62% in December 2024.
by Japhet Ruto
