EPRA Freezes Pipeline Charges in Hope for Lower Fuel Costs
Pipeline charges are included in EPRA’s fuel pricing formula as part of the wholesale and distribution costs, meaning any freeze or reduction can help lower overall fuel costs...
✨ Key Highlights
The Energy and Petroleum Regulatory Authority (EPRA) has capped new pipeline transport tariffs for the Kenya Pipeline Company (KPC), shielding consumers from potentially higher fuel prices.
- EPRA approved pipeline charges flat for 2025/26, with marginal increases to Ksh 5.83 per cubic metre per kilometre by 2027/28, lower than KPC's requested rates.
- Key organizations involved are the Energy and Petroleum Regulatory Authority (EPRA) and the Kenya Pipeline Company (KPC).
- This decision aims to prevent further increases in already high fuel prices, a move that comes amidst a nationwide strike by matatu operators protesting recent fuel price hikes.
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EPRA announces new revised fuel prices for May to June - May 2026
The Energy and Petroleum Regulatory Authority has announced a reduction in diesel prices by Ksh10.06 per litre, while increasing kerosene prices by Ksh38.60 per litre. The Energy and Petroleum Regulatory Authority has capped new pipeline transport tariffs for the Kenya Pipeline Company, shielding consumers from potentially higher fuel prices. Kenyan Treasury Cabinet Secretary John Mbadi explained that Tanzania's fuel is cheaper than Kenya's due to the timing of imports, not a significant pricing gap. The Law Society of Kenya is demanding an audit of Kenya's government-to-government oil importation arrangement and full disclosure of the fuel pricing formula. Kenyan energy officials have defended the country's high electricity costs, asserting that a reliable power supply is paramount for economic growth, even if it means higher tariffs.
