Motorists Association Seeks Independent Audit of EPRA Fuel Prices, G-to-G Oil Deal

NAIROBI, Kenya — Kenya's latest fuel price increases have triggered fresh calls for an independent audit of petroleum pricing, with the Motorists Association of Kenya (MAK) demanding proof that consumers are getting value from the government's oil import deal.

The association wants the Energy and Petroleum Regulatory Authority (EPRA) to explain how it arrived at the latest prices, particularly the sharp rise in kerosene costs, and disclose whether the government-to-government (G-to-G) petroleum arrangement has delivered measurable savings.

The demand comes as motorists, transport operators and households face another increase in fuel expenses. The new prices took effect on Wednesday night, 15 October, and will remain in force until 14 November 2026.

In Nairobi, a litre of super petrol now costs a maximum of Sh226.96, diesel Sh227.76 and kerosene Sh219.87. The respective increases are Sh12.93, Sh9.90 and Sh28.49, according to EPRA's latest price notice.

In a statement issued on 14 October, MAK said the increases would put further pressure on household budgets and businesses that depend on fuel to move people and goods.

“This is not a minor adjustment to an economic commodity. It is a direct assault on the productive capacity of the Kenyan economy,” the association said.

But the central issue in its complaint goes beyond the price increases themselves. MAK wants consumers to be able to examine the calculations behind the prices and assess whether the country's petroleum import system is working in their interests.

Why kerosene has become the centre of the dispute

Kerosene has recorded the largest increase in Nairobi, rising by Sh28.49 per litre, compared with Sh12.93 for petrol and Sh9.90 for diesel.

The difference has prompted MAK to question how the regulator arrived at the final figures.

According to the association, the reported average landed costs of imported petrol, diesel and kerosene rose by 11.81 per cent, 11.32 per cent and 9.41 per cent, respectively.

Yet the increases at the pump were 6.04 per cent for petrol, 4.54 per cent for diesel and 14.89 per cent for kerosene.

“How does the product recording the lowest percentage increase in landed costs suffer the highest percentage increase at the pump?” MAK asked.

The figures highlight a question worth examining, but they do not, on their own, establish that the regulator made an error.

Landed cost is only one part of the final pump price. Taxes, statutory levies, transport expenses, distribution margins and other adjustments can affect what consumers pay. The relationship between landed costs and retail prices therefore needs to be assessed using the full pricing calculations.

MAK has acknowledged this distinction. It is calling on EPRA to publish the underlying figures so that independent reviewers can test whether the increases follow the regulator's pricing methodology.

The authority's published price notice confirms the new maximum retail prices. However, a complete assessment of the association's allegations requires scrutiny of the detailed calculations and supporting data.

Dispute over the cost of fighting fuel adulteration

The association has also challenged the reported explanation that the kerosene price adjustment was partly intended to narrow the price gap between kerosene and automotive fuels to discourage fuel adulteration.

Fuel adulteration involves mixing products in ways that can compromise their quality and intended use. The practice can cause damage to vehicles and equipment and create safety risks.

MAK argues that authorities should tackle the problem through stronger inspections, fuel-quality testing and prosecution of offenders rather than relying on price adjustments that increase costs for households using kerosene for cooking and lighting.

“This is an extraordinary admission of regulatory failure,” the association said of the explanation.

It added: “Adulteration is an enforcement problem. It must not become an excuse for imposing punitive prices on the poorest citizens.”

The argument raises a difficult policy question: how should the government discourage illegal fuel practices without placing an excessive burden on legitimate consumers?

However, the association's criticism does not, by itself, establish that the price adjustment was improperly calculated or that the regulator's stated objective is ineffective. Those questions require evidence about the pricing decision, enforcement measures and the effects of the policy.

EPRA's detailed response to MAK's specific concerns would help clarify the reasoning behind the kerosene adjustment.

G-to-G oil deal faces renewed scrutiny

Beyond the monthly review, MAK wants an independent audit of Kenya's government-to-government petroleum import arrangement.

The deal was introduced to help manage petroleum imports, maintain reliable supplies and ease pressure on foreign exchange by changing how import transactions are financed and settled.

But MAK says consumers should now be able to assess whether the arrangement has delivered those benefits in practice.

“Three years later, the ordinary motorist is entitled to ask: where are the promised benefits?” the association said.

It wants the government to disclose the costs associated with the arrangement, including supplier premiums, financing charges, freight, insurance and foreign exchange exposure.

The association also wants a comparison between the G-to-G arrangement and competitive procurement alternatives. Such an assessment, it argues, would help establish whether the current system offers better value than other available options.

The demand comes amid renewed pressure on fuel prices from international market movements. Reuters reported on 15 October that Kenya's latest increases were linked to higher import costs amid conflict in the Middle East, highlighting the country's exposure to events beyond its borders.

That external pressure is an important part of the picture. Even a procurement arrangement that improves supply reliability or eases foreign exchange pressures cannot shield Kenya completely from changes in global oil prices.

The key question is whether the arrangement has reduced costs or risks compared with realistic alternatives, and whether any benefits have reached consumers.

MAK says the government should publish evidence of any savings achieved and explain how the arrangement affects the final price paid at the pump.

“If G-to-G cannot demonstrate that Kenyans are purchasing petroleum more competitively than they otherwise would, it has no economic justification for continued protection from competition,” the association said.

An independent audit could help answer that question, provided it examines the full cost of the arrangement, compares like-for-like alternatives and accounts for the benefits of supply security as well as direct financial costs.

Calls for full disclosure of fuel pricing

MAK wants EPRA to release detailed pricing worksheets for each petroleum product.

The proposed disclosures include international price benchmarks, landed costs, exchange rates, freight and insurance charges, taxes, levies, distribution margins and any adjustments applied during the monthly review.

It has also called for the publication of the Petroleum Development Levy Fund's receipts, payments, stabilisation balances and product-specific allocations.

The association wants Parliament, the Auditor-General and the Competition Authority of Kenya to examine the country's petroleum procurement and pricing arrangements.

Its argument is that consumers should be able to distinguish between increases caused by international market conditions and those arising from domestic taxes, policy decisions or procurement costs.

“An explanation is not scientific merely because it contains figures. It becomes scientific when its assumptions, methodology and calculations can be independently examined and reproduced,” MAK said.

The call for transparency also presents an opportunity for the regulator to explain the monthly price-setting process in a way that ordinary consumers can understand.

Publishing the calculations would not automatically lower fuel prices. It would, however, allow independent scrutiny of the figures and help establish whether the increases are consistent with the regulator's methodology.

What the increases mean for households and businesses

The immediate effects extend beyond motorists filling their tanks.

Higher diesel costs can increase the expenses faced by public transport operators, freight companies, farmers and businesses moving goods across the country. Those costs may eventually feed into fares and retail prices, although the size and timing of any increases will depend on individual businesses and market conditions.

Kerosene users face a particularly sharp rise in the latest review. For households that depend on it for cooking or lighting, the additional cost can force difficult choices about how to stretch already limited budgets.

Transport operators may also face pressure when fuel costs rise during existing contracts that were negotiated at lower prices.

MAK says it will consult its members and other stakeholders on further lawful civic action, including peaceful demonstrations, if the concerns remain unanswered.

The association has also called for a shift towards more competitive and transparent petroleum procurement. It acknowledges, however, that market competition alone cannot eliminate the impact of international oil price shocks.

For now, the latest prices remain in force until 14 November. The more lasting question is whether the government and the regulator will provide enough information for consumers to judge the system's performance.

Kenyans are not simply asking why fuel has become more expensive. They want to know which costs are driving the increases, whether the procurement arrangement is delivering value and what evidence supports the decisions affecting their daily expenses.

An independent audit and the publication of detailed pricing calculations would provide a clearer basis for answering those questions.

About the Author

Maureen Onyango is a journalist passionate about storytelling, life coaching and spiritual lessons. She studied at the Kenya Institute of Management and enjoys telling stories that inform, inspire and empower communities.