ashli john
I love seeing regulators step up and protect the people they serve it's a real relief to know prices aren't skyrocketing let’s hope this continues
EPRA Keeps Fuel Prices Steady Amidst Subsidy Adjustments
The Energy and Petroleum Regulatory Authority (EPRA) has opted to maintain current fuel prices in Nairobi for the second consecutive month. This decision, effective until April 14, 2025, sees Super Petrol priced at KSh176.58, Diesel at KSh167.06, and Kerosene at KSh151.39. The unchanged prices come despite increased operational costs for oil marketers and transporters, which have prompted significant adjustments in fuel subsidies.
EPRA's move involves a substantial hike in subsidies to balance the rising expenses of oil marketers and transporters, a strategy informed by recent insights from a Cost of Service Study (Cossop II). The study recommended higher margins for various players in the fuel supply chain, which has now influenced this strategic subsidy increment. For instance, subsidies for Super Petrol have surged from Sh2.41 to Sh6.92 per litre, Diesel from Sh5.59 to Sh9.90 per litre, and Kerosene from Sh8.74 to Sh10.35 per litre.
Operational Costs and Strategic Timing
The adjustments come at a time when the margins for oil marketing companies (OMCs) have been increased by 23%. This includes a rise in transport charges from Sh0.54 to Sh0.86 per litre and an increase in storage costs from Sh4.03 to Sh4.36 per litre. According to EPRA Director-General Daniel Kiptoo, transporters had not seen an increase in their margins since 2010. This stagnation in margins has created a looming risk of operational shutdowns, necessitating urgent corrective measures.
This strategic subsidy increase coincides with a period of declining global oil prices, which EPRA has used as a cushion to avoid hiking consumer prices. February 2025's landed costs indicated a mixed bag: a slight increase of 1.34% for Super Petrol and 1.41% for Diesel, while Kerosene saw a moderate decrease of 1.36%. This dynamic showcases EPRA's cautious balancing act between global market trends and domestic economic stability.
Looking ahead, EPRA aims for further margin adjustments. The current plans include targeted eventual increases in petrol margins by Sh7.8 per litre, Diesel by Sh7.75, and Kerosene by Sh7.67. These projections are part of a broader strategy to ensure the sustainability of fuel provision services amidst evolving market conditions.
Interesting how EPRA is juggling subsidies while keeping pump prices flat. The margin hike for transporters seems justified after a decade of stagnation. It also shows they’re using the dip in global oil prices to cushion consumers. Still, the long‑term sustainability will depend on how these subsidies are funded.
Kenya's regulators are wisely preventing a price shock for its citizens.
EPRA decided to hold fuel prices steady. This move follows a large increase in subsidies. Marketers and transporters have complained about rising costs. The study demanded higher margins for the supply chain. EPRA responded by boosting subsidies for petrol diesel and kerosene. The new subsidies are several shillings per litre. Despite this the retail price stays the same. Consumers therefore see no immediate impact. The government is using lower global oil prices as a buffer. This strategy buys time for further adjustments. Transport margins have not moved since 2010. That stagnation threatened operational shutdowns. The subsidy increase aims to avoid that fate. Future plans include more margin hikes. The overall goal is to keep fuel stable for the public.
EPRA’s approach appears measured given the current market dynamics. Maintaining price stability while addressing cost pressures reflects prudent regulatory oversight.
The subsidy increase aligns with the COSSOP II findings. It should mitigate margin erosion.
Behold the grand theatre of economics where subsidies dance upon the stage of public policy! EPRA, the maestro, conducts a symphony of margins, transport costs, and global oil tides. Yet the audience-ordinary drivers-remain blissfully unaware of the backstage negotiations. This drama, rich in color, underscores how delicate the balance of affordability and sustainability truly is. One must appreciate the poetic irony that lower global prices become the curtain that hides the rising cost of operating the fuel empire.
Yo EPRA u gotta keep makin those subsidies bigger lol. If u dont u'll see pumps close real fast. This sh*t cant wait.
Great job keeping prices steady for everyday folks. This helps families budget better.
Oh wow, another subsidy tweak, because that’s never been done before. At least the price tags stay the same, right?
The regulatory calculus demonstrated herein is a testament to sophisticated fiscal stewardship. It elegantly reconciles macro‑economic variables with micro‑consumer stability.
Your analysis captures the essential trade‑offs well and respects the regional context. I concur that sustaining margins is vital for supply continuity.
Exactly, the subsidy boost is a necessary lifeline. Any delay would cripple the whole distribution network.
i dont get why they keep changing numbers its just confusing and i think its a waste of money
Keeping prices steady is a win for the community. It shows the regulator cares about everyday drivers.
One could argue that price stability masks deeper systemic issues. Subsidies may merely postpone inevitable market corrections. Yet the narrative persists, defying logical scrutiny.
Behind the scenes, global oil cartels manipulate prices while regulators play puppet. The subsidy surge is a smokescreen to hide ulterior motives. Citizens must stay vigilant against such hidden agendas.
i think its just a ploy to keep people dependin on the state dont ya? its not about economics at all
In the grand scheme, fuel prices are but a ripple in the river of societal progress. Our choices today shape tomorrow's horizon.
The subsidy increase helps keep the pumps open and drivers happy. It's a practical step for the local economy.
I love seeing regulators step up and protect the people they serve it's a real relief to know prices aren't skyrocketing let’s hope this continues