- EPRA director general Eng. Edward Mwirigi appeared before a National Assembly committee to explain the October 14 fuel price adjustment
- Mwirigi warned that winter demand and ongoing Middle East tensions could push Kenyan fuel prices even higher in coming months
- Super petrol in Nairobi now retails at KSh 226.96 per litre following a KSh 12.93 increase for the October 15 to November 14 cycle
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The Energy and Petroleum Regulatory Authority (EPRA) has cautioned that Kenyan fuel prices could climb higher in the months ahead, depending on how the conflict in the Middle East unfolds.
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EPRA director general Edward Mwirigi delivered the warning Thursday, October 15, while appearing before the National Assembly's Special Funds Accounts Committee, chaired by Migori woman representative Fatuma Mohammed.
The committee had called EPRA officials to account for the fuel price adjustment announced on October 14, and its implications for consumers.
Middle East Conflict Disrupting Fuel Supply
Mwirigi attributed the latest price adjustment to disruptions in global fuel supply caused by the ongoing conflict in the Middle East, which has affected shipments from the Gulf region.
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He said attacks on fuel infrastructure and vessels had compelled importers to source petroleum products from alternative markets, including Singapore, where prices are reportedly higher.
The director general warned that prices could increase further during the winter season, traditionally a period of elevated demand in the northern hemisphere, subject to how the situation in the Middle East evolves.
The authority said it was closely monitoring developments.
Committee chairperson Mohammed sought clarification on whether the public had been adequately informed about the supply disruptions, including reports of two fuel vessels being bombed.
Mwirigi confirmed that Saudi vessels had been targeted, compounding the supply challenges facing Kenya.
Despite the constraints, Mwirigi maintained that Kenya's fuel prices remained competitive relative to those of neighbouring countries.
He also said EPRA was exploring alternative energy sources, though he acknowledged that moving away from conventional petroleum products would be a significant challenge given their widespread use.
New Fuel Prices and VAT Extension Under Review
Under the revised prices for the October 15 to November 14 cycle, super petrol in Nairobi retails at KSh 226.96 per litre, reflecting a KSh 12.93 increase.
Diesel rose by KSh 9.90 per litre, while kerosene recorded a sharper increase of KSh 28.49 per litre.
The adjustments came as the National Assembly was considering a proposal to extend the reduced 8% VAT on petroleum products by a further 90 days from October 15.
Members of the committee raised concerns about the effect of the increases on ordinary Kenyans, particularly in light of earlier presidential assurances that fuel prices would not go up.
They also questioned whether EPRA's explanations for the adjustment were sufficient.
The committee also examined Auditor-General reports covering EPRA's Staff Mortgage and Car Loan Scheme for the financial years 2021/2022 to 2024/2025.
The audit flagged concerns including irregular interest charges, loan administration costs, and risk management practices.
EPRA told the committee that the car loan interest rate was reduced from 4% to 3% in August 2022, following an amendment to its agreement with scheme administrator Kenya Commercial Bank (KCB), and that a formal Staff Mortgage and Car Loan Policy was approved by its Board in December 2023.
The committee will review both EPRA's responses and the Auditor-General's findings as it prepares its final report on the four financial years under scrutiny.
Source: TUKO.co.ke