EPRA makes major fuel announcement that could influence prices

The Energy and Petroleum Regulatory Authority (EPRA) has made two massive, consecutive announcements that are heavily shaking up fuel prices across Kenya: a critical mid-cycle price revision to avert a national crisis, and the launch of a major biofuel blending program.

Following intense nationwide transport strikes and protests by public transport operators, EPRA executed an emergency mid-cycle review to drastically alter pump prices. Concurrently, to address long-term pricing volatility, the regulator officially rolled out plans to blend locally manufactured ethanol into petrol.

1. Emergency Mid-Cycle Price AdjustmentEPRA recalculated maximum retail pump prices mid-month following a petition from public transport stakeholders. The regulator significantly narrowed the massive gap between diesel and kerosene to mitigate the severe risk of fuel adulteration.

The adjusted maximum pump prices in Nairobi are as follows:Super Petrol: Remains unchanged at KSh 214.25 per litre.Diesel: Reduced by KSh 10.06, now retailing at KSh 232.86 per litre.Kerosene: Increased sharply by KSh 38.60, now retailing at KSh 191.38 per litre.This emergency framework remains in force until June 14, 2026. Following these interventions and direct state negotiations at Mombasa State House, matatu operators officially called off their nationwide strike. Furthermore, President Ruto has ordered EPRA to prepare for additional fuel price cuts in the upcoming pricing cycle.

2. The Biofuel Blending ProgramTo structurally cushion consumers from global crude shocks, EPRA announced the operationalization of the Biofuels Regulations.The Strategy: Mixing locally produced ethanol into Super Petrol at 5% (E5) and 10% (E10) blend ratios.Price Influence: By introducing a cheaper, domestic component into the fuel supply chain, Kenya aims to reduce its heavy reliance on expensive imported petroleum.Economic Impact: This move is projected to stabilize local retail pump prices over time while boosting agricultural and manufacturing sectors.

3. Pipeline Tariff Hikes (Long-term Impact)Adding pressure to the pricing matrix, EPRA approved an upward review of the Kenya Pipeline Company (KPC) transport tariffs for the next three years. Pipeline tariffs will rise to KSh 5.53 per cubic metre per kilometre starting July 15, 2026. This structural increase in distribution costs is expected to pass directly to consumers, potentially raising baseline pump prices for the next three years.If you would like to look closely at how these changes impact your specific region or business, let me know:Your location or major town in Kenya to provide exact localized pump prices.Whether you want to track the impact on electricity tariffs, which are heavily tied to these fuel cost changes.