EPRA announced a new compensation arrangement for oil marketing companies that supply petroleum volumes exceeding the amounts used in the current and next fuel pricing cycles.

In a letter dated 27 October, EPRA Director‑General Edward Mwirigi Kinyua confirmed that qualifying companies will receive advance sales compensation for the excess volumes.

The regulator explained that the compensation will offset the cost gap between the actual supply price and the price used in monthly fuel price reviews, a phenomenon known as price lag.

EPRA directed that excess volumes and any incremental costs be accounted for on a first‑in, first‑out basis, with verification using data from the Kenya Revenue Authority.

The move follows warnings from the Petroleum Outlets Association of Kenya and the Kenya Independent Petroleum Dealers Association that independent stations face stock‑outs after some oil marketers allegedly sold above the gazetted wholesale caps.

Dealers claim the alleged over‑pricing began on 15 October, when the latest fuel price cycle took effect, despite complaints lodged with EPRA and the State Department for Petroleum.

For the October pricing cycle, EPRA set maximum wholesale prices at Ksh211.80 per litre for Super Petrol, Ksh212.60 for diesel and Ksh204.79 for kerosene.

The regulator had earlier raised pump prices for the 15 October‑14 November period, increasing Super Petrol by Ksh12.93, diesel by Ksh9.90 and kerosene by Ksh28.49.

These price hikes followed the government's suspension of the fuel price stabilisation mechanism that previously cushioned motorists from rising costs.