Categories: Business

Fuel Prices Fall Slightly in January–February Cycle as Import Costs Ease

Motorists and households will see modest relief at the pump after the Energy and Petroleum Regulatory Authority (EPRA) announced a reduction in fuel prices for the January–February 2026 pricing cycle, reflecting lower global import costs.

In a press release issued by the regulator, EPRA said the new maximum retail prices will apply from January 15 to February 14, 2026, in line with the Petroleum Act.
“The maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene decrease by KShs.2.00/litre, KShs.1.00/litre and KShs.1.00/litre respectively,” EPRA said.

The price cuts are being driven by a drop in the landed cost of imported fuel, particularly diesel and kerosene, which are key inputs for transport, power generation and household use. According to EPRA, the “average landed cost of imported Super Petrol decreased by 0.10%, Diesel by 4.20% and Kerosene by 8.92%” between November and December 2025.

While the decline in petrol import costs was marginal, the sharper fall in diesel and kerosene prices is expected to ease pressure on transport operators, manufacturers and low-income households that rely on kerosene for cooking and lighting.

EPRA noted that the announced prices already factor in taxes, stating that they are “inclusive of the 16% Value Added Tax (VAT)” and adjusted excise duty in line with inflation under existing tax laws. The regulator emphasized that the adjustments reflect its monthly pricing formula, which tracks international oil prices and import costs, rather than discretionary government intervention.

Although the reductions are modest, analysts say the cuts may help slow inflation at the margins, especially in sectors sensitive to fuel costs such as transport, food distribution and electricity generation.

The new prices come at a time when households continue to grapple with high living costs, making even small reductions significant for day-to-day expenses.

Branislav Opudo

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