EPRA announces new fuel prices for June - July

The Energy and Petroleum Regulatory Authority (EPRA) has announced new fuel prices for the June-July pricing cycle.

In a statement released on Sunday, EPRA said it had calculated the maximum retail prices of petroleum products in accordance with Section 101(y) of the Petroleum Act, 2019 and Legal Notice No. 192 of 2022.

The new prices will take effect from midnight on June 15 and remain in force until July 14, 2026.

During the period under review, the maximum allowed pump prices for Super Petrol and Diesel have decreased by Sh0.22 per litre and Sh10.00 per litre respectively, while the price of Kerosene remains unchanged.

In Nairobi, Super Petrol, Diesel, and Kerosene will now retail at Sh214.03, Sh222.86, and Sh191.38 per litre respectively for the next 30 days.

"The Government will in this cycle cushion consumers through the Petroleum Development Levy (PDL) Fund by utilizing approximately Sh10 billion to subsidize the prices of Diesel and Kerosene," EPRA said.

The latest review comes after months of volatility in Kenya's fuel market, driven largely by rising global oil prices and supply disruptions linked to conflict in the Middle East.

In April, EPRA announced one of the sharpest fuel price increases in recent years, raising petrol by Sh28.69 per litre and diesel by Sh40.30 per litre after the cost of imported petroleum products surged.

Although a subsequent reduction in fuel taxes helped lower pump prices later that month, the relief proved short-lived. In May, EPRA again raised petrol prices by Sh16.65 per litre and diesel by Sh46.29 per litre, pushing diesel prices in Nairobi above KSh240 per litre and sparking public outrage.

The sharp increases triggered protests and a nationwide transport sector strike, with operators arguing that soaring fuel costs had made it difficult to sustain operations.

The demonstrations disrupted transport services in several towns and intensified pressure on the government to intervene.

In response, President William Ruto's administration pledged to reduce diesel prices by Sh10 per litre beginning with the June-July pricing cycle, a move aimed at easing the burden on public transport operators, businesses and consumers.

Reuters reported that the government has spent billions of shillings on fuel subsidies in recent months as it seeks to shield Kenyans from the full impact of rising global energy prices.

Analysts expect the reduction to provide some relief to the transport and logistics sectors, which heavily rely on diesel.

However, fuel prices remain significantly higher than they were at the beginning of the year, highlighting the continued impact of global oil market volatility on Kenya's economy.