Kenyans should brace for higher fuel prices as the Energy Petroleum Regulatory Authority (EPRA) moves to implement key recommendations from the 2nd Cost of Service Study (COSS) for Petroleum in Kenya.
The review could drive up petrol prices by Ksh 7.80, diesel by Ksh 7.75 and kerosene by Ksh 7.67.
EPRA Director General Daniel Kiptoo says the review is a delicate and balancing act necessary to ensure retailers remain profitable and continue investing in infrastructure and service quality.
As part of its mandate EPRA has regularly been assessing value chain elements that impact fuel pricing, network costs and overall sector efficiency through its Cost of Service Studies (COSS).
The first study done in 2018 led to significant changes, including the unbundling of pipeline services, a review of fuel margins, and new inventory financing mechanisms.
However, with new legislative developments in the sector, EPRA in December 2023 contracted consultants to conduct the second study and propose necessary pricing adjustments.
The new study evaluates factors affecting petroleum costs and pricing, including optimizing import costs and assessing pipeline and road transport expenses, storage tariffs and inventory financing.
EPRA says this will be implemented gradually to minimize the impact on pump prices for smooth transition for businesses and consumers.
