The Energy and Petroleum Regulatory Authority (Epra) has scheduled new oil marketers’ margin increases for July 2025 and July 2026, building on the first round of a raise implemented this month amid concerns about inflation.
The margin increases are meant to benefit oil marketers and fuel transporters and were reviewed following a Cost-of-Service Study in the Supply of Petroleum Products (Cossop), launched this month.
In the March 15 to - April 14 pricing cycle, Epra raised oil marketing companies' (OMCs) margins on a litre of petrol from Sh12.39 to Sh15.24, on a litre of diesel from Sh12.36 to Sh15.16, and on a litre of kerosene from Sh12.36 to Sh15.09.
Epra also raised fuel charges to compensate transporters within 40 kilometres of Nairobi from Sh0.54 to Sh0.86 for each litre of fuel delivered to fuel stations, while storage and distribution charges were raised from Sh4.03 to Sh4.36 per litre.
“We have implemented our first tranche of the Cossop in the last pricing cycle. The second phase is coming up in July 2025 and the last phase for margins will be in July 2026,” Epra’s director of petroleum and gas Edward Kinyua said on Tuesday.
“For transporters margins, we will do it in two phases. We did the first phase in March 2025 and we will do the final phase in July 2025,” Mr Kinyua added.
Epra implemented a full adjustment on retail investment and operation margins on March 15, which saw oil marketers earn Sh9.72 from Sh8.19 for each litre of fuel.
The authority, however, maintained fuel prices that applied in the February- March 2025 pricing cycle after it equally raised subsidy on a litre of petrol from Sh2.41 to Sh6.92, on a litre of diesel from Sh5.59 to Sh9.9 and on a litre of kerosene from Sh8.74 to Sh10.35.
This meant that while pump prices did not change, more taxpayer money would be used to compensate oil marketers to cover for the raised margins.
The authority approved a Sh7.8 raise on margin for a litre of petrol, Sh7.75 on a litre of diesel, and Sh7.67 on a litre of kerosene for oil marketers and transporters in the Cossop.
The remaining margins will be introduced into pump prices in July 2025 and July 2026, Mr Kinyua said.
“I believe that will give the industry some big breathing space before we implement the next cost of survey study,” he said.
