Kenyan consumers will face higher fuel costs this month as the Energy and Petroleum Regulatory Authority (EPRA) has adjusted the retail petroleum prices upwards for the period January 15 to February 14, 2025.
The price of key petroleum products—Super Petrol, Diesel, and Kerosene—have been slightly increased, signalling a rise in the cost of living for households and businesses alike.
For this pricing cycle, the maximum pump price of Super Petrol has increased by Sh0.29 per litre to Sh176.29 per litre, while Diesel has risen by Sh2.00 per litre to stand at Sh165.06. Kerosene, often regarded as a vital household fuel for low-income households, has seen the highest hike of Sh3.00 per litre to Sh148.39.
These changes come amidst a backdrop of persistent global oil market volatility and domestic tax adjustments that continue to exert upward pressure on fuel prices. The increases, though relatively modest for some products, are likely to ripple through the economy, affecting transportation, manufacturing, and household energy expenses.
The adjustments are intrinsically tied to shifts in the international cost of landed fuel. The average landed cost of imported Super Petrol saw a slight decline of 0.14% from Sh79,322.64 ($612.53) per cubic metre in November 2024 to Sh79,213.86 ($611.69) in December 2024.
Diesel prices on the global market experienced a marginal uptick of 0.06%, moving from Sh83,357.86 ($643.69) to Sh83,410.95 ($644.10) per cubic metre over the same period. Kerosene showed the most significant fluctuation, with its landed cost decreasing by 1.62%, from Sh85,508.85 ($660.30) per cubic metre in November to Sh84,128.38 ($649.64) in December 2024.
Despite Kerosene’s drop in the international market, local retail prices for the fuel experienced a notable increase, reflecting the intricate balance of supply chains, taxation, and storage costs.
The rising retail price of Kerosene remains a concern for many low-income households who rely on it for cooking and lighting. For instance, a Kenyan household using 20 litres of Kerosene per month will now spend Sh60 more than in the previous pricing cycle.
Meanwhile, drivers and businesses heavily reliant on Diesel will see a projected increase of approximately Sh200 for every 100 litres consumed. While Super Petrol’s Sh0.29 increase might appear negligible on paper, the cumulative effect on transportation costs, including public service vehicles (PSVs), will further exert upward pressure on the overall cost of living.
Additionally, the country’s recently introduced taxation policies, including inflation adjustments, continue to fuel concern towards affordability. This recent hike follows historical trends where international price changes, taxation policies, and logistics have driven prices higher.
As international oil markets continue to evolve and as local economic pressures remain high, consumers should look to energy-saving practices to mitigate the impact of rising costs.
