Cut Fuel Prices by Sh29: Ndindi Nyoro’s PPK Proposes Sh5.5B Subsidy And Margin Trims

The People’s Party of Kenya (PPK), led by Kiharu Member of Parliament Ndindi Nyoro, has proposed a Sh29 per litre reduction in fuel prices, pushing to lower petrol to Sh197.96 and diesel to Sh198.77.

The demand follows the latest monthly pump price increases announced by the Energy and Petroleum Regulatory Authority (EPRA) for the October 15 to November 14, 2026 pricing cycle.

In a statement issued on Saturday, October 17, 2026, the party hit out at the regulator and the government, terming the latest hikes insensitive to the plight of citizens struggling with an inflation rate of 6.8 per cent.

“It is insensitive for the government to have announced such hikes in fuel prices,” the party stated. “The current trend is already unbearable.”

The PPK Proposal: How to Drop Fuel Below Sh200

To achieve the Sh29 price drop per litre without altering Value Added Tax (VAT), the PPK outlined a three-pronged intervention:

1. Sh5.5 Billion Subsidy: Introduce a government subsidy to knock off Sh12 per litre on petrol and diesel.

2. Trim Importers’ and Distributors’ Margins: Cut industry margins by Sh10 per litre.

3. Scrap the 2024 Fuel Levy: Remove the Sh7 per litre fuel levy introduced in 2024.

The party criticized recent margin adjustments, noting that importers’ margins rose by 12 per cent (Sh2.16 per litre) during the current economic strain, calling it “plainly unacceptable.”

Discrepancy in Landed Costs

PPK further questioned the rationale behind EPRA’s latest price increases, pointing to falling landed costs for diesel.

According to the party’s calculations, the landed cost of diesel dropped by 17 per cent—from Sh167 per litre in May down to Sh138.21 in the latest pricing cycle—yet retail prices at the pump continued to climb.

“Diesel landing cost is lower than in May at Sh138 now vs Sh167 in May, a 17 per cent decrease, yet there is an increase in prices,” the statement highlighted.

However, EPRA maintained that the upward adjustment was driven by higher international costs for imported refined petroleum products and increased landed costs for petrol.

Under EPRA’s current review for Nairobi:

1. Petrol jumped by Sh12.93 to Sh226.96 per litre.

2. Diesel rose by Sh9.90 to Sh227.76 per litre.

3. Kerosene spiked by Sh28.49 to Sh219.87 per litre.

Structural Reforms and Turkana Oil

Beyond immediate price relief, PPK called for broader policy changes in Kenya’s energy sector:

1. End G-to-G Fuel Deal: Terminate the Government-to-Government oil supply arrangement to restore competitive market pricing.

2. Transparency on Dangote Refinery: Publish the investment agreement and disclose the full shareholding structure of the Dangote East African Petroleum Refinery.

3. Protect Turkana Resources: Strongly cautioned government officials against interfering with Turkana oil reserves.