Kenyans have received slight relief at the pump after the Energy and Petroleum Regulatory Authority (Epra) announced a reduction of Sh1 per litre in the prices of both petrol and diesel.
This adjustment comes just a month after fuel prices surged to the highest levels seen in nearly two years, sparking public outcry and concerns over the rising cost of living.
In its latest monthly review, Epra attributed the marginal decrease to improved global supply conditions and a stabilising Kenyan shilling, which slightly lowered the cost of importing refined petroleum products.
The new pricing structure, effective from August 15 to September 14, reflects a modest shift in international oil prices and exchange rates, although analysts had anticipated a steeper drop.
Under the revised prices, motorists in Nairobi will now pay approximately Sh193.10 for a litre of petrol, down from Sh194.10, while diesel will retail at around Sh179.20 per litre, from Sh180.20. Kerosene prices have remained unchanged, offering no reprieve to households that rely on it for cooking and lighting.
Despite the decrease, fuel prices remain elevated compared to the same period last year, sustaining pressure on transport, manufacturing, and agriculture sectors.
Public transport operators have noted that while the Sh1 reduction is welcome, it is not significant enough to trigger fare adjustments, given the other rising operational costs.
The marginal cut also comes amid increased government scrutiny over fuel subsidy programmes and calls for transparency in the pricing formula.
Industry observers argue that while global market trends influence local prices, inefficiencies and taxes within the domestic supply chain contribute substantially to the high pump prices.
The government, through Epra, has maintained that it continues to monitor international oil movements and foreign exchange volatility closely, with a view to cushioning consumers from sharp price shocks.
Meanwhile, consumer advocacy groups have urged authorities to consider broader policy interventions, including reviewing the fuel tax regime and exploring alternative energy sources to reduce dependency on costly fossil fuels.
As the country braces for further economic challenges, the latest adjustment in fuel prices offers only limited relief, underscoring the need for long-term strategies to manage energy costs sustainably.
Written By Ian Maleve
