The Energy and Petroleum Regulatory Authority (EPRA) has announced plans to introduce new charges on fuel prices at the pump. This move aims to address the rising costs faced by oil marketing companies and fuel transporters across the nation.
The decision follows the insights and recommendations from the recently completed second Cost of Service Study for the petroleum sector. EPRA conducts this study every five years to assess the financial dynamics within the petroleum and electricity sectors.
The first study took place in 2018, and the latest one has just wrapped up, leading to suggestions for additional charges on fuel products such as petrol and diesel. EPRA emphasizes that these changes are necessary to ensure that fuel prices accurately reflect the expenses incurred throughout the supply chain.
“It is crucial that we align fuel prices with the current market realities in a regulated pricing environment,” stated EPRA Director General Daniel Kiptoo. Dr. John Mutua, EPRA’s Director of Economic Regulations, further explained, “The government typically has medium-term plans, and given that significant economic factors can shift, it is essential to conduct a review every five years.”
The comprehensive 14-month study, which concluded in February, has received approval from both policymakers and EPRA’s board of directors. As a result of this impending change, prices for super petrol, diesel, and kerosene are expected to rise, with petrol projected to increase by Ksh.7.80 per litre. The additional revenue generated will benefit oil marketing companies and petroleum transporters.
To mitigate the impact of this upcoming price increase on Kenyans, EPRA has committed to implementing these new charges gradually. The study was conducted by Kurrent Technologies Limited in collaboration with the UK-based Channoil Consulting Limited.
