The Energy and Petroleum Regulatory Authority (EPRA) has outlined its legal powers over fuel pricing in Kenya, explaining how it regulates petrol stations, sets maximum pump prices and protects motorists from unfair practices.
The authority operates under the Energy Act, 2019, which established it as an independent regulator responsible for overseeing the energy and petroleum sectors. The law gives EPRA powers to enforce regulations, issue licences and take action against businesses that fail to comply with applicable requirements.
Section 10 of the Energy Act assigns EPRA responsibility for regulating petroleum activities, including importation, transportation, storage and sale. Under Section 11, the regulator can issue, renew, suspend or revoke licences and enforce compliance with industry rules.
The law also gives the authority powers to inspect premises where petroleum operations take place, subject to applicable legal requirements. This enables it to monitor petrol stations and other licensed petroleum businesses.
How EPRA Determines Fuel Prices
Kenya’s monthly fuel pricing system is governed by the Petroleum Act, 2019, and the Petroleum (Pricing) Regulations, 2022.
Under Regulation 3, EPRA determines and publishes maximum wholesale and retail prices on the 14th day of every month. The prices take effect on the 15th and remain in force until the 14th of the following month.
Licensed petroleum dealers are prohibited from selling fuel above the maximum prices set by the authority.
The pricing formula takes several factors into account, including wholesale costs, transportation expenses, regulated retail margins and Value Added Tax (VAT). International petroleum prices and changes in the exchange rate can also influence the final amount motorists pay at the pump.
Although EPRA applies the pricing formula and announces the maximum permitted prices, taxes are determined under the relevant legislation.
Kenyan consumers are protected by Article 46 of the Constitution, which guarantees rights relating to information, the quality of goods and services, and the protection of their economic interests.
The Energy Act also requires EPRA to safeguard consumer interests within the energy sector.
Under Regulation 10 of the Petroleum (Pricing) Regulations, licensed fuel retailers must display the applicable prices at their stations. A dealer who fails to display the prices commits an offence punishable, upon conviction, by a fine of KSh20,000.
Motorists can use the published EPRA price limits to check whether a petrol station is charging within the permitted rates. Consumers who encounter suspected violations can report them through the authority’s official communication channels.
Beyond petroleum pricing, EPRA regulates electricity tariffs, monitors compliance with safety and quality requirements and handles certain disputes within the energy sector.
The regulator’s mandate therefore extends beyond announcing monthly fuel prices to ensuring that licensed businesses follow the law and that consumers have access to the protections provided under Kenya’s legal framework.