A new proposal to amend the Petroleum Act, 2019 could significantly change how fuel prices are adjusted in Kenya, with the aim of ensuring consumers benefit more quickly when global prices fall.
Addressing the press on Monday, April 20, 2026, Rongo Member of Parliament Paul Abuor said global fuel markets are experiencing heightened volatility due to geopolitical developments, including risks to critical supply routes such as the Strait of Hormuz.
“When disruptions occur, fuel prices can rise rapidly,” he noted.
However, Abuor said the reverse trend has not benefited Kenyans as quickly.
“When global prices begin to fall, Kenyans often wait too long before benefiting,” he added.
The lawmaker attributed the delay to the current pricing framework under the Petroleum Act, 2019, where fuel prices are adjusted monthly by the Energy and Petroleum Regulatory Authority (EPRA). He argued that this system creates delays in passing the benefits of falling global prices to consumers.
According to Abuor, the proposed amendment introduces an “emergency pricing period” during times of global market disruption.
“The Cabinet Secretary for Energy, in consultation with EPRA, would be allowed to declare an emergency pricing period, and fuel price reviews would be conducted every 14 days during such periods,” he explained.
He added that mechanisms would be introduced to ensure faster transmission of price reductions, while mid-cycle price increases would be prohibited.
“During this period, prices will only go down or remain stable, never rise mid-cycle,” Abuor emphasized.
He stressed that the proposal is not intended to interfere with the existing pricing formula.
“The existing pricing formula remains unchanged. Landed costs and stock positions will be considered, and no adjustment will be made that risks supply disruption or financial distress,” he said.
Abuor further clarified that the proposal is not a form of price control.
“This is not price control; it is a timing improvement within the current system,” he stated.
According to the MP, the reform aims to provide quicker relief to consumers and businesses during periods of falling global prices while maintaining supply stability.
“This reform will deliver faster relief when global prices fall, improve fairness and transparency in pricing, and reduce pressure on households and businesses,” Abuor said.
He also revealed that consultations are already underway with key stakeholders, including the Ministry of Energy and EPRA, to refine the proposal.
“I have arranged consultative meetings with the Ministry of Energy, EPRA, and other stakeholders to gather input and strengthen this proposal to ensure consumers get timely relief in fuel prices,” he added.
If adopted, the amendment could mark a significant shift in Kenya’s fuel pricing regime, particularly during periods of global market volatility.
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