The Kenyan government says the latest increase in fuel prices has been driven by instability in the international oil market caused by the ongoing Middle East conflict.
Under the latest review by the Energy and Petroleum Regulatory Authority (EPRA), motorists in Nairobi will now pay Ksh.214.25 per litre for Super Petrol and Ksh.242.92 for Diesel after prices increased by Ksh.16.65 and Ksh.46.29 respectively, while Kerosene remained unchanged at Ksh.152.78 per litre.
The price hikes have sparked concern among many Kenyans already grappling with high taxes and rising living costs.
In a statement issued on Friday, Energy Cabinet Secretary Hon. Opiyo Wandayi said geopolitical tensions had disrupted global supply chains, increased crude oil prices, and pushed up freight and insurance costs.
He explained that Kenya, as a net importer of petroleum products, remains vulnerable to international market shocks and exchange rate pressures.
According to the ministry, the average landed cost of imported Super Petrol rose by 10 per cent between March and April, increasing from USD 823.27 per metric tonne to USD 906.23. Diesel recorded the sharpest increase, rising by 20.32 per cent from USD 1,073.82 to USD 1,291.98 per metric tonne, while Kerosene increased slightly by 1.59 per cent.
The government said Kerosene prices were maintained at current levels to protect low-income households that depend on the product for domestic use.
Hon. Wandayi also noted that tensions around the Strait of Hormuz had significantly increased insurance premiums, further raising petroleum import costs.
Despite the pressure on global prices, the ministry said Kenya continues to benefit from fixed freight and premium costs secured under the government-to-government fuel import arrangement.
To cushion consumers, the government disclosed that about Ksh.5 billion from the Petroleum Development Levy stabilisation mechanism had been used to support Diesel and Kerosene prices during the current pricing cycle.
The ministry further defended the government-to-government import framework, stating that it has helped shield Kenya from steep increases in global freight and premium charges currently affecting countries relying on spot market purchases.
The government assured the public that fuel stocks remain adequate and said consultations are ongoing with stakeholders across the transport, manufacturing, energy, and business sectors to explore ways of easing the impact of rising fuel prices on consumers.