The recent disruption in the Strait of Hormuz has come to haunt Kenya as fuel prices now increase by Sh 8.99 for petrol, Sh8.67 for diesel and Sh9.65 on a litre of kerosene, as shipping lines pass on extra costs due to longer routes.
This means a litre of petrol will now retail at Sh186.31, a litre of diesel will go for Sh171.58, while kerosene will sell at Sh156.58, in Nairobi.
This is up from Sh177.32, Sh162.91 and Sh146.93 per litre respectively.
The maximum wholesale and retail prices of petroleum products will be in force from July 15, 2025, to August 14, 2025.
Freight cost increases have had an impact as shipping lines reacted to the recent attacks in the Strait of Hormuz, a crucial waterway located between Iran and Oman, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
It is a vital chokepoint for global oil and natural gas trade, with approximately 20 per cent of global oil consumption and 20 per cent of global liquefied natural gas (LNG) trade passing through it daily.
“There has been a shift by the shipping lines to a longer route which in turn means additional cost, it means the same will be transferred to consumer in the long run hence increase the cost of freight, in one way or the other the cost affects Mombasa,” Shippers Council of Eastern Africa CEO Agayo Ogambi said.
“Bunker prices are rising rapidly by 15 per cent in the last two weeks, so we expect emergency fuel surcharges. Very tough times ahead,” Ogambi said.
This adds up to the pressure that has been created by the Yemen-backed Houthi Rebels in the Red Sea, which saw a temporary suspension of shipments by some oil giants through the affected route, influencing fuel prices.
Additionally, the misplacement of ships and containers has also led to congestion at ports, including the Port of Mombasa, causing delays and demurrage charges.
"Kenya imports all its petroleum product requirements in refined form and the products are traded in international markets based on a pricing benchmark," EPRA director general Daniel Kiptoo said.
