Fuel prices in Kenya have surged to record highs, with petrol and diesel now retailing above US$1.29 per litre in the capital, as rising global oil costs push up import bills despite government efforts to cushion consumers.
The Energy and Petroleum Regulatory Authority (EPRA) announced late Tuesday that new pump prices would take effect from April 15 to May 14, reflecting sharp increases in the cost of imported fuel.
Under the revised pricing, a litre of super petrol in Nairobi will retail at about US$1.29, while diesel will cost roughly the same at US$1.29 per litre. Kerosene prices remain lower at around US$0.95 per litre.
The latest adjustment follows steep increases in global fuel prices, which have been driven in part by geopolitical tensions affecting supply chains.
According to EPRA, the average landed cost of imported petrol rose by 41.53 percent between February and March, climbing from US$582.11 to US$823.87 per cubic metre. Diesel costs surged even more sharply, rising by 68.72 percent from US$636.45 to US$1,073.82 per cubic metre, while kerosene recorded the biggest jump, increasing by 105.15 percent to US$1,311.93 per cubic metre.
The higher import costs have translated directly into pump price increases for consumers. Petrol prices rose by about US$0.18 per litre, while diesel registered a steeper increase of approximately US$0.25 per litre. Kerosene prices were left unchanged.
In a bid to ease the burden on households and businesses, the government has reduced the value-added tax (VAT) on petroleum products from 16 percent to 13 percent. Authorities are also using the Petroleum Development Levy (PDL) Fund to stabilize prices, allocating about US$38.8 million to cushion consumers from the full impact of rising global costs.
Despite these measures, fuel prices have crossed the US$1.25 threshold, putting additional pressure on the cost of living in East Africa’s largest economy.
Energy experts warn that sustained increases in fuel prices could have broader economic consequences, including higher transport costs and rising inflation, as businesses pass on increased expenses to consumers.
The surge in prices comes against a backdrop of tightening global energy markets. Disruptions linked to geopolitical tensions in the Middle East have contributed to a rebound in crude oil prices, pushing them above US$100 per barrel in recent days.
Kenya, which relies heavily on imported petroleum products, is particularly vulnerable to such external shocks. Any sustained increase in global oil prices tends to feed quickly into domestic inflation and currency pressures.
Authorities have sought to reassure the public that fuel supplies remain stable. Energy Cabinet Secretary Opiyo Wandayi recently warned oil marketers against hoarding, emphasizing that the country has sufficient stocks to meet demand.
However, analysts say the outlook remains uncertain, with further price increases possible if global oil markets remain volatile.
For households already grappling with high food and transport costs, the latest fuel price hike adds another layer of financial strain, underscoring the economy’s exposure to global energy shocks.
