The Energy and Petroleum Regulatory Authority (EPRA) in Kenya sets the maximum pump prices for petrol, diesel and kerosene. The authority uses a formula to calculate these prices based on international crude oil prices. The calculation includes a fixed levy and a variable component tied to global oil prices.
The formula used by EPRA includes a fixed levy of 12.5 shillings per litre and a variable component that reflects the average price of crude oil on the international market. The variable component is adjusted monthly to reflect changes in global oil prices. The final price is then rounded to the nearest shilling.
This pricing mechanism has been in place since 2018. It aims to ensure transparency and stability in the fuel market. The system allows for adjustments based on global oil price fluctuations. The EPRA publishes the calculated prices on its official website. The method has been reviewed by international energy experts. The process is designed to protect consumers from price volatility.
