Fuel pump /FILEThe High Court has consolidated two petitions challenging the legality and constitutionality of the Energy and Petroleum Regulatory Authority's (Epra) fuel pricing system.
Justice Roselyne Aburili directed that the petition filed by the Law Society of Kenya (LSK) against the Attorney General and other respondents will serve as the lead file after finding that it raises issues similar to those in a separate petition filed by activist Francis Awino.
The two petitions challenge the current fuel pricing regime, alleging lack of transparency and accountability in the determination of fuel pump prices and the management of monies collected under the Petroleum Development Levy Fund.
When the matter came up on Thursday for directions, the parties agreed to consolidate the cases to avoid duplication of proceedings and the risk of conflicting court decisions.
In his petition, Awino sued Epra alongside other state agencies, seeking orders compelling the regulator to publicly disclose a detailed breakdown of the fuel pricing formula used in the May–June 2026 review cycle.
"That the 1st respondent (Epra) merely, as the norm, applied the pricing formula established under law and did not exercise any discretion capable of producing artificial or unjustified prices," his petition states.
He wants the disclosures to include landed fuel costs, applicable taxes and levies, exchange rate assumptions, profit margins, and the criteria used to determine the final pump prices.
Awino is also seeking accountability over the reported utilisation of approximately Sh5 billion from the Petroleum Development Levy Fund (PDLF), arguing that the public has not been adequately informed on how the funds were used to cushion consumers against rising global oil prices.
According to the court filings, the levy funds were allegedly utilised "without adequate disclosure and accountability," raising concerns over transparency and the prudent management of public resources.
He sought orders suspending the implementation of the maximum retail petroleum prices announced by Epra for the period between May 15 and June 14.
At the time, in Nairobi, Super Petrol, Diesel, and Kerosene were retailed at Sh214.25, Sh242.92, and Sh152.78
Awino contended that the fuel price review would have a ripple effect across the economy by increasing the high cost of living.
In its response, Epra opposed the petitions, describing them as misconceived and lacking merit and maintaining that it has acted within its statutory mandate in setting and reviewing fuel prices.
Through an affidavit sworn by its Director of Economic Regulation and Strategy, John Mutua, the regulator said it publishes monthly petroleum pricing schedules and explanatory statements outlining the factors considered in determining pump prices.
Epra further argued that the pricing formula is prescribed under the Petroleum (Pricing) Regulations, 2022, a publicly available legal instrument, and that information on the methodology and components used to compute fuel prices has always been accessible to the public.
The authority also denied claims that it had withheld information from consumers, saying neither of the petitioners had made a formal request for such information under the Access to Information Act.
Epra maintained that the Petroleum (Pricing) Regulations were subjected to public participation and stakeholder engagement before they came into force and argued that the law does not require fresh public participation whenever the regulator exercises powers conferred by statute.
The regulator further stated that costs such as gross margins, storage and distribution charges are determined through a consultative process involving multiple stakeholders under the Cost-of-Service Supply of Petroleum Products (COSSOP) study, the latest of which was conducted in October 2024.
The authority urged the court to dismiss the petitions, maintaining that they are based on speculation and dissatisfaction.
Justice Aburili directed that all necessary documents be served before the next hearing date on November 18.
