Rongo MP Proposes Amendment of Petroleum Act to Review Fuel Prices Every 14 Days During Emergencies

Rongo MP Proposes Amendment of Petroleum Act to Review Fuel Prices Every 14 Days During Emergencies

Nairobi — Rongo Member of Parliament Paul Abuor has tabled a proposal to amend the Petroleum Act, 2019, seeking to introduce a more responsive fuel pricing mechanism that would allow reviews every 14 days during periods of global market instability.

The proposed legislative change comes at a time when Kenyans continue to grapple with fluctuating fuel prices, often driven by international market shocks and delayed adjustments under the current monthly review system managed by the Energy and Petroleum Regulatory Authority (EPRA).

Speaking on Monday, April 20, Abuor argued that the existing framework has proven insufficient in cushioning consumers from sudden global price shifts, particularly when international fuel costs decline but local prices remain unchanged for weeks.

“Under the current framework of the Petroleum Act, 2019, fuel prices are adjusted once a month by EPRA. This creates a delay in passing the benefits of falling global prices to consumers,” the legislator stated.

A Shift Toward Faster Response

At the core of the proposal is the introduction of an “emergency pricing period,” a mechanism that would be triggered during officially declared global disruptions affecting fuel supply chains or pricing trends. Under this framework, the Energy Cabinet Secretary, in consultation with EPRA, would be empowered to initiate biweekly reviews of pump prices.

Abuor maintains that this shift would allow Kenya’s pricing system to respond more dynamically to global oil market movements, reducing the lag that often disadvantages consumers.

“This is not price control, it is a timing improvement within the current system,” he clarified, emphasising that the proposed amendment does not interfere with the pricing formula itself.

The MP was keen to point out that the established determinants of fuel pricing — including landed costs, exchange rates, and stock levels — would remain intact, preserving the integrity of the current regulatory structure.

Protection Against Sudden Price Hikes

A notable provision in the proposed amendment is a safeguard against abrupt price increases during the emergency window. According to the bill, once an emergency pricing period is declared, fuel prices would either decrease or remain constant within each 14-day cycle, effectively shielding consumers from mid-cycle spikes.

This measure is expected to provide temporary relief to households and businesses, especially in times of heightened economic pressure, where fuel costs often ripple across transport, food, and production sectors.

Analysts say such a provision could stabilize consumer expectations, though concerns remain about its potential impact on suppliers and market sustainability if global prices rise sharply within short intervals.

Stakeholder Consultations Underway

Abuor revealed that consultations are already underway with key stakeholders, including the Ministry of Energy and EPRA, to refine the proposal before it is formally introduced in Parliament.

“I have arranged consultative meetings with the Ministry of Energy, EPRA and other stakeholders for their input on enriching this proposal of ensuring consumers get timely relief in prices,” he said.

The move signals a collaborative approach aimed at balancing consumer protection with market realities, particularly in a sector that remains highly sensitive to global geopolitical developments.

Broader Economic Context

The proposal comes against a backdrop of rising public concern over fuel affordability, following recent price hikes that pushed pump prices close to Ksh200 per litre in major urban centres. Fuel costs remain a critical economic indicator in Kenya, influencing inflation and the overall cost of living.

While the government has previously introduced tax adjustments and subsidies to cushion consumers, critics argue that structural reforms such as pricing frequency could offer a more sustainable solution.

If adopted, the amendment could mark a significant shift in Kenya’s fuel pricing policy, positioning the country among jurisdictions that employ more flexible pricing mechanisms during periods of economic uncertainty.

As debate around the proposal gains momentum, attention will now turn to Parliament and regulatory agencies to determine whether the suggested reforms can strike the delicate balance between market efficiency and consumer protection.

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Rongo MP Proposes Amendment of Petroleum Act to Review Fuel Prices Every 14 Days During Emergencies