How EPRA’s Delayed Action Contributed to Rising Fuel Prices

By Ken Muthomi - Reporter

Kenya, 15 April 2026 - Weeks of public concern over a looming fuel shortage across the country escalated into panic buying, rationing at petrol stations, and eventual price increases.

Despite repeated reassurances from the government that fuel availability in the country remains stable, the Energy and Petroleum Regulatory Authority (EPRA) is now at the centre of public scrutiny over whether it acted swiftly enough as early warning signs emerged.

Since the beginning of March, motorists across the country have reported difficulties accessing fuel, with some petrol stations introducing purchase limits, some as low as KSh 2,000 per customer.

The situation triggered long queues in petrol stations, especially in major urban centres such as Nairobi, Kisumu, Mombasa, and others, with transport operators warning that the situation may compromise transport and logistics across the country.

The government, however, kept reassuring the Kenyans that everything is under control. It attributed the fuel shortage to an alleged hoarding of fuel by private distributors, who were fearing price hikes due to conflicts in the Middle East that had led to the closure of key transport routes.
Industry players claimed that the closure of the Strait of Hormuz by Iran for more than a month, which is responsible for distributing 20% of global energy, had led to the price of transporting fuel across the globe to skyrocket.

However, the government maintained that the government-to-government (G-to-G) fuel import arrangement would cushion the country against rising global fuel prices.

In a statement a week ago, the Kenya Pipeline Company (KPC) assured that the country has sufficient stocks of petroleum products in all its fuel storage terminals to meet current and future demands.

“We wish to assure the public that there is sufficient fuel in all our terminals and depots and that the products meet national and international quality standards as prescribed by relevant certification bodies,” KPC stated.

Ministry of Energy officials, including former State Department for Petroleum Principal Secretary Mohamed Liban, repeatedly urged the public to avoid panic buying, insisting that any distribution challenges were temporary and manageable.

EPRA had threatened to take legal action against Oil Marketing Companies (OMCs) that were deliberately hoarding fuel, saying that this was creating an artificial shortage in the country.

The regulator said the practice constitutes an offence under Section 99(1) of the Petroleum Act, with offenders facing penalties including licence suspension, fines, and possible imprisonment.

But Kenyans were not convinced. Transport operators warned that continued disruptions could lead to increased fares and reduced mobility, especially in urban areas where the majority depend on public transport.

It is against this backdrop that EPRA announced higher petrol and diesel prices, reinforcing concerns that the situation was not fully under control.

In its review released on Tuesday night, the regulator said that pump prices for Super Petrol had been increased by KSh 28.69 per litre and Diesel hiked by KSh 40.30 per litre. The price of kerosene remained unchanged.

Motorists will now be required to pay Ksh206.97 for Super Petrol, Ksh206.84 for diesel, and Ksh152.8 for kerosene until 14 May 2026.

The authority, however, said that the Value Added Tax (VAT) rate on Super Petrol, Diesel, and Kerosene has been reduced from 16 per cent to 13 per cent to cushion customers from the high prices.

"We wish to reiterate that as per the earlier directive from the government, the Super Petrol delivered by One Petroleum ex MT Paloma has not been included in the computation of the applicable prices," EPRA clarified.

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Attention is now turning to EPRA and the Ministry of Energy, with questions emerging over whether pre-emptive enforcement measures, particularly on suspected hoarding and distribution inefficiencies, could have eased the pressure before the crisis peaked.

Speaking in Siaya on Wednesday, Energy Cabinet Secretary Opiyo Wandayi claimed that President William Ruto’s administration is laying out more strategies to ensure that Kenyans don’t feel a pinch in their pockets due to high fuel prices.

The CS, who attributed the price increase to the ongoing conflict in Iran, claims that the president had introduced a fuel subsidy worth Ksh6.2 billion to prevent, what he says could have been, higher fuel prices.

Wandayi says that the president directed that the prices of kerosene remain unchanged so as to protect low-income households, which rely on this commodity for lighting and cooking.

“Yesterday you saw the hike in fuel prices, but I want to tell you, do not worry. The prices could have gone up much more, but because the Head of State directed us to put a subsidy, the rise was moderated,” the CS said.

"The President also told me that, despite the rise in petrol and diesel prices, kerosene should not be raised. So if the U.S.-Israel war on Iran ends, fuel prices will go down," he added.

On the other hand, the Kenya Transport Association has warned that the new fuel prices will prompt a 13-14% increase in overall transport operating costs across the country.

Members of the association, which include those operating heavy commercial vehicles, transit trucks, and cargo trucks, have been encouraged to ensure that they review their cost structure and adjust transport rates accordingly.

“Members are further encouraged to engage their customers and contractual partners promptly, clearly communicating the basis of these adjustments to ensure transparency and continuity of service,” the association said.

Matatu operators across the country have also announced a 25 percent increase in fares due to the new fuel costs.

The Motorists Association of Kenya branded the new prices as a ‘betrayal’, warning that the fuel cost will not only affect transport and logistics but also the overall cost of living.

“It’s not our wish. Please bear with us. We’re urging the government to go back to the subsidy that was there before. It will be easier to bring down the cost of fuel,” Matatu Owners Association Chairman Albert Karakacha said.

“We are shocked, angry, and we feel betrayed. Diesel is the backbone of transport. This will affect the business sector immensely,” Chairman of the motorists association of Kenya, Peter Murima, said.

As the dust settles, attention is now turning to whether the government and key stakeholders will review their response mechanisms to prevent a similar disruption in future fuel pricing.