EPRA Introduces New Fuel Pricing Formula For June-July Cycle Ahead Of Review

The Energy and Petroleum Regulatory Authority (EPRA) has updated elements of its fuel pricing methodology for the June to July 2026 cycle. The adjustment comes before the scheduled mid-month price review.

Under the new approach, the cost base for fuel cargoes arriving between May 10 and May 31 will use average international prices from April. Deliveries between June 1 and June 9 will reference May averages. This differs from the prior system that applied April prices to early May cargoes and May prices to later ones.

The change means Kenyan consumers may not receive the full benefit of the sharp drop in global oil prices seen in May. Brent crude fell around 20 percent that month, with refined products recording even larger declines. Diesel, for example, moved from $1,409.28 per tonne in April to $1,132.04 per tonne in May.

EPRA continues to calculate pump prices for super petrol, kerosene, and automotive diesel based on landing costs, inland transport from depots to retail outlets, and standard retail margins. The revised timing for referencing international benchmarks is the key shift.

The mid-month review has not yet taken place. It remains scheduled for mid-June, when the new formula will be applied to set actual pump prices for the coming period.

This development occurs against the backdrop of President William Ruto’s stated intention to reduce diesel prices by KSh 10 per litre in the current cycle. Additional government subsidies may be required if the adjusted methodology narrows the expected price relief.

For Kenya’s construction industry, fuel costs remain a critical input. Diesel powers excavators, trucks, generators on sites, and material haulage for road projects and building developments. Any delay in price reductions could keep operating expenses elevated for contractors.

The May decline in global prices followed improved market sentiment around possible supply increases and geopolitical easing. Refined product prices moved in tandem with the broader oil downturn.

Businesses in logistics and heavy industry have previously pushed for pricing systems that respond more quickly to international movements. EPRA’s tweak seeks to align import cost timing with delivery realities while maintaining stability in the domestic market.

As the review date approaches, attention will focus on whether the government provides extra fiscal support to meet its diesel price target. The outcome will influence costs across transport, manufacturing, and construction sectors that rely heavily on petroleum products.

The formula change highlights the complex balance regulators must strike between global market signals and local economic pressures. With the review still pending, the exact impact on pump prices remains to be determined in the coming days.