Government attributes fuel price rise to Middle East conflict, allocates Ksh 5 billion for consumer relief

The Ministry of Energy and Petroleum has attributed the recent fuel price increase to persistent volatility in global oil markets caused by the ongoing Middle East conflict, identifying this as the main factor behind the adjustments from May 15 to June 14, 2026.
In a statement on Friday, May 15, 2025, Energy and Petroleum Cabinet Secretary Opiyo Wandayi noted that geopolitical tensions in the region have resulted in higher international crude oil prices, increased freight and supply chain costs, and growing uncertainty about petroleum product availability in global markets.
As a net petroleum importer, Kenya continues to be directly vulnerable to these pressures.
The landed cost of Super Petrol increased by 10 percent from USD 823.27 per cubic meter in March 2026 to USD 906.23 in April 2026, while Diesel rose by 20.32 percent from USD 1,073.82 to USD 1,291.98 per cubic meter during the same period. Kerosene experienced a slight increase of 1.59 percent.
Consequently, the prices of Super Petrol and Diesel have been raised in accordance with global market conditions, exchange rate pressures, and increased supply chain costs. However, kerosene prices have been kept at their current levels through targeted government support, acknowledging the dependence on this product by low-income households.
To mitigate the impact on consumers, the government has allocated approximately Ksh 5 billion from the Petroleum Development Levy stabilization mechanism to reduce the extent of price increases for Diesel and Kerosene.
The government has also reduced VAT on petroleum products from 16 percent to 8 percent and continues to benefit from fixed freight and premium costs obtained through the Government-to-Government fuel importation framework, which the ministry has protected Kenya from the higher costs faced by countries relying on spot market purchases.
The ministry assured Kenyans that the country maintains sufficient petroleum reserves and that the government is closely monitoring international oil market developments.
It also mentioned that it is consulting with stakeholders from energy, transport, manufacturing, and business sectors to identify practical measures to minimize the impact of rising fuel costs.
The ministry cautioned against exploitative pricing practices during this uncertain period, urging vigilance to ensure consumers are not subjected to further disadvantage.