Motorists in Kenya will soon pay more for fuel. The Energy and Petroleum Regulatory Authority (EPRA) plans to raise petrol prices by Ksh 7.80 per litre. This increase stems from revised margins for oil marketers. Consequently, retail petrol prices and oil dealers’ costs will rise. Many worry about the impact on transportation and the economy.
EPRA adjusts fuel prices regularly. Recently, it proposed raising retailers’ margins by Ksh 4.59 per litre. Additionally, financing surcharges will increase by Ksh 3.21 per litre. Together, these changes total Ksh 7.80 for petrol. For kerosene, a similar Ksh 7.67 hike is expected. These adjustments follow a Cost of Service study. The study shows rising costs for oil dealers. However, motorists will bear the burden.
Today, March 13, 2025, Nairobi’s petrol price is Ksh 176.58 per litre. Tomorrow’s review could push it to Ksh 184.38. This jump worries Kenyans already facing high living costs. Moreover, transportation costs may climb. As a result, food and goods prices could rise. Public transport operators might also hike fares. Small businesses and drivers will feel the strain too.
Oil marketers gain some relief from this change. The extra Ksh 4.59 covers transportation and labor costs. Meanwhile, the Ksh 3.21 surcharge may fund energy projects. Yet, this shifts costs to consumers. Online, X users suggest a gradual rollout. Still, EPRA hasn’t confirmed details. This silence fuels debates about transparency.
Kenya imports all its petroleum. Global prices, like Murban oil at US$74.87 per barrel, affect local costs. The Kenyan shilling, at Ksh 129.58 per dollar, plays a role too. Despite cheaper imports recently, local prices are climbing. Taxes and levies drive this trend. Historically, EPRA stabilizes prices monthly. Now, this increase breaks from recent drops.
Public reaction on X shows frustration. Many fear the hike will hit low-income families hardest. Some call for subsidies or renewable energy. Previously, the government offset price spikes. However, with oil imports now private, volatility may grow. Policy responses remain unclear.
Tomorrow, EPRA will finalize prices. If confirmed, the Ksh 7.80 hike will challenge motorists. The economy may feel the ripple effects. For now, Kenyans await details. Regardless, fuel costs are set to sting more in 2025.
