Petroleum products usage on the rise even as electricity production increase
According to EPRA Director General Daniel Kiptoo, Kenya's economic landscape during the review period was shaped by a mix of domestic and international factors, influencing specific sectors and overall economic growth.
The Energy Petroleum Regulatory Authority (EPRA) says it recorded a 7 per cent increase in the demand for petroleum products locally as of December 31, 2024.
In their biannual performance overview statistics report for the first half of the current financial year, released today, the energy regulatory authority indicated that electricity generation also increased by 6.13 per cent, while the consumption of Liquefied Petroleum gases (LPG) increased the most, at 13.38 per cent.
According to EPRA Director General Daniel Kiptoo, Kenya’s economic landscape during the review period was shaped by a mix of domestic and international factors, influencing specific sectors and overall economic growth.
The country’s Gross Domestic Product (GDP) growth remained steady, with projections indicating a rise of 5.4 per cent for the entire year.
EPRA indicates that Inflation levels were kept relatively low, aided by increased food production and stable fuel prices.
The first six months of the 2024/25 financial year recorded a modest increase in global oil demand, though it was tempered by economic slowdowns in significant regions like China.
“Supply dynamics revealed a steady rise in production from non-OPEC+ countries, while OPEC+ maintained production levels through voluntary cuts. Price stability was observed in the market, influenced by balanced supply-demand factors alongside geopolitical developments,” EPRA said in its report.
The stable macroeconomic environment fostered growth in the demand for electricity and petroleum products.
A notable trend observed by EPRA is the adoption of captive energy generation, particularly among industrial consumers.
The authority revealed that solar photovoltaic (PV) systems account for the highest contribution to the country’s captive generation capacity, making up 47.21 per cent of the total.
In a move to promote accessibility and affordability, ultimately encouraging more consumers to transition to cleaner transport solutions, EPRA’s director for economic regulation and strategy, John Mutua, stated that they are undertaking a study to establish end-user tariffs for public charging stations for those with e-mobility cars and motorcycles.
This is even after the introduction of the e-mobility tariff in 2023.
“In line with global energy transition trends, the Authority has been actively working with the e-mobility industry to drive adoption. In April 2023, we introduced a discounted e-mobility tariff category, and its impact has been significant. To ensure fair pricing for electric vehicle charging, EPRA is currently undertaking a study to establish an appropriate end-user tariff for public charging stations,” He stated.
He reiterated that EPRA recognises the need to promote responsible energy consumption.
