Fuel prices in Kenya have recorded a sharp increase, with diesel rising by Sh40 per litre and super petrol by Sh28.69, marking one of the steepest adjustments in recent years. The new prices, which took effect on Wednesday morning, now place both diesel and petrol at about Sh206 per litre in Nairobi.
The Energy and Petroleum Regulatory Authority (EPRA) attributed the surge to elevated landed costs driven by the ongoing conflict in the Middle East, particularly the US–Israel attack on Iran and subsequent retaliation. The disruption has affected oil production, freight routes, and insurance costs, pushing global prices higher.
Despite the increase, the government intervened to cushion consumers, subsidising diesel by Sh20 per litre, petrol by Sh4, and kerosene by Sh100. This has kept kerosene prices unchanged at Sh152.78 per litre.
The latest adjustment, which will remain in force until mid-May, represents a significant jump from the previous pricing cycle, when petrol retailed at Sh178.28 per litre and diesel at Sh166.54 in Nairobi.
Analysts warn that the increase is likely to trigger a ripple effect across the economy, with higher transport and production costs expected to push up the prices of goods and services. Sectors such as agriculture and manufacturing, which rely heavily on fuel, are particularly vulnerable.
The global crisis intensified after attacks on key oil infrastructure in the Gulf region and the closure of the Strait of Hormuz, a critical shipping route that handles a significant portion of the world’s oil supply. The disruption has constrained supply chains and driven up operational costs, which are ultimately passed on to consumers.
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Locally, the situation has been compounded by reports of fuel shortages, with many petrol stations experiencing dry pumps in recent weeks. Motorists have accused oil marketers of hoarding fuel purchased at lower prices in anticipation of the latest increase.
In response, EPRA has issued demand notices to several companies suspected of hoarding or selling fuel above regulated prices, even as government agencies maintain that the country has adequate stock under the government-to-government supply arrangement.
The current price hike surpasses previous increases seen in recent years, including those following the removal of fuel subsidies in 2022. At the time, pump prices rose sharply due to a weakening shilling and global market pressures.
Kenya’s situation mirrors trends across the region. Rwanda and Tanzania have also adjusted fuel prices upwards in recent weeks, citing the same geopolitical tensions and supply disruptions. However, Kenyan consumers continue to bear higher costs, partly due to heavier taxation on petroleum products.
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