Tougher times as diesel rises by Sh46.29, petrol by Sh16.65 in latest Epra review

Kenyans should brace for even tougher times as the government increases retail prices for a litre of diesel and super petrol by Sh46.29 and Sh16.65, respectively.

This is likely to push up production and transportation costs, a move likely to see manufacturers pass the increased bill to consumers.

In a statement released on Thursday, the Energy and Petroleum Regulatory Authority (EPRA) said Kerosene prices will remain unchanged during the period under review for the pricing cycle running from May 15 to June 14, 2026.

The latest increase reverses last month’s reduction in fuel prices, where motorists had enjoyed lower pump prices following a revision of Value Added Tax (VAT) from 13 per cent to eight per cent through Legal Notice No. 70 dated April 15, 2026.

During the previous cycle, Super Petrol retailed at Sh197.60 per litre in Nairobi while diesel sold at Sh196.63 after reductions of Sh9.37 and Sh10.21 respectively.

However, the new review signals renewed pressure on consumers and businesses, particularly in the transport and manufacturing sectors that heavily rely on diesel.

“In the period under review, the maximum allowed petroleum pump prices for Super Petrol and diesel increase by Sh16.65 per litre and Sh46.29 per litre respectively while the price of kerosene remains unchanged,” EPRA said.

The regulator attributed the increase to a sharp rise in global petroleum prices and higher landed costs of imported fuel products.

According to EPRA, the average landed cost of imported Super Petrol rose by 10 per cent from US$823.27 per cubic metre in March 2026 to US$906.23 in April.

Diesel recorded the highest jump, increasing by 20.32 per cent from US$1,073.82 to US$1,291.98 per cubic metre over the same period.

The landed cost of kerosene also increased by 1.59 per cent from US$1,311.93 to US$1,332.73 per cubic metre.

EPRA noted that international petroleum products are traded in United States dollars and are therefore affected by movements in global oil markets and foreign exchange rates.

“The prices are inclusive of VAT in line with the VAT Act, the Finance Act and revised excise duty rates,” EPRA said.

The authority added that the government would use approximately Sh5 billion from the Petroleum Development Levy Fund to cushion consumers from further increases in diesel and kerosene prices.

“Further, the Government will in this cycle cushion consumers through the Petroleum Development Levy Fund by utilising approximately Sh5 billion to subsidise the prices of diesel and kerosene,” the regulator said.

The latest adjustment comes amid continued fluctuations in international oil markets and growing concerns over the rising cost of living.

Fuel prices in Kenya directly affect transport costs, electricity generation, food prices and the overall cost of goods and services across the economy.

EPRA maintained that the pricing model is designed to ensure importation costs are recovered while protecting consumers from excessive market volatility.