How fuel prices are set in Kenya: the EPRA monthly review explained
EPRA's October review raised petrol by KES 12.93, diesel by KES 9.90 and kerosene by KES 28.49 a litre. Here is why, and what it means for your budget.
Every month, the Energy and Petroleum Regulatory Authority (EPRA) announces the maximum prices that petrol stations in Kenya can charge for super petrol, diesel and kerosene. These fuel prices affect far more than motorists: they feed into matatu fares, the cost of moving goods and, eventually, the price of food. This guide explains how EPRA sets fuel prices in Kenya, what makes up the price of a litre, why prices differ between towns, and how to plan around the monthly review.
The monthly fuel price review
EPRA reviews pump prices on the 14th of every month. The new maximum prices take effect from the 15th and apply until the 14th of the following month. Stations may sell below the maximum but not above it. The announcement lists prices for every major town, and each review either raises prices, lowers them or leaves them unchanged. You can see the current prices for your town on our fuel prices page, which we update after every review.
What makes up the price of a litre
EPRA uses a formula with several building blocks. The starting point is the landed cost: the price of the fuel Kenya imported in the previous month, plus freight and insurance to Mombasa, converted into shillings. On top of that come the costs of storing the fuel, moving it inland by pipeline and road, and the margins that oil marketers and dealers are allowed to earn.
The final block is taxes and levies, which make up a large share of the pump price. They include excise duty, VAT and levies such as the Road Maintenance Levy and the Petroleum Development Levy. Because taxes are such a big part of the price, a change in VAT on fuel, or in any levy, shows up clearly at the pump even when world oil prices have not moved.
Why fuel prices in Kenya go up or down
World oil prices. When global prices for crude oil and refined products rise, Kenya pays more for its imports, and the increase reaches local pumps about a month later because the formula uses the previous month's cargoes.
The exchange rate. Kenya pays for fuel in US dollars, so a weaker shilling makes every litre more expensive in shillings, even if world prices are steady. A stronger shilling has the opposite effect.
Taxes and policy. Changes to VAT, excise duty or levies in a Finance Act, or temporary tax relief, move prices directly. The government has also at times used the Petroleum Development Levy fund to cushion consumers by stabilising prices, which can keep pump prices steadier than world prices would suggest.
Import arrangements. Since 2023, much of Kenya's fuel has been imported through a government-to-government deal with Gulf suppliers, which affects how cargoes are priced and paid for.
Why prices differ between towns
Fuel arrives at Mombasa, so towns near the coast pay the least. The further a town is from Mombasa and the main pipeline depots, the more it costs to deliver fuel there, which is why remote towns such as Mandera and Lodwar usually have the highest maximum prices. The difference between Mombasa and Nairobi is usually a few shillings a litre, while the most remote towns can pay considerably more.
What fuel prices mean for your budget
To see what a price change costs you, multiply the change per litre by the litres you use. A car that does 12 km a litre uses 25 litres for a 300 km trip, so a rise of KES 10 a litre adds KES 250 to that trip. A business that runs delivery vehicles can do the same calculation for its monthly fuel use and adjust prices or routes accordingly. Higher diesel prices also tend to push up transport fares and food prices, which shows up in inflation; follow the wider picture on our cost of living page.
How to cut your fuel costs
Keep tyres inflated to the recommended pressure, service the vehicle regularly, avoid long idling in traffic and combine errands into fewer trips. Smooth acceleration and steady speeds use noticeably less fuel than hard driving. For households, a simple monthly budget helps absorb price rises; our savings calculator shows how setting a little aside each month builds a buffer.
Frequently asked questions
When does EPRA announce fuel prices?
On the 14th of every month, with new prices running from the 15th to the 14th of the next month.
Why is fuel cheaper in Mombasa than in Nairobi?
Fuel is imported through Mombasa, so towns further inland pay more to have it transported.
What affects fuel prices in Kenya most?
World oil prices, the shilling's exchange rate against the dollar, and taxes and levies.
Sources
This article is general information, not financial advice.