Nairobi. Fuel prices in Kenya have surged to unprecedented levels following a sharp rise in global oil prices and increased international shipping costs.
According to an announcement issued on April 14, 2026 by the Energy and Petroleum Regulatory Authority (Epra), the cost of diesel imports rose by 68.72 percent to $1,073.2 per cubic metre, while petrol increased by 41.53 percent to $823.87.
The new retail prices, which take effect from midnight on April 15, 2026, will see the cost of diesel rise by KSh40.30 to KSh206.84 (about Tsh4,136) per litre. Petrol will increase by KSh28.69 to KSh206.97 (about Tsh4,139) per litre. Kerosene will remain unchanged at KSh152.78 per litre, supported by a government subsidy of KSh99.16 per litre.
Despite subsidies of KSh20.30 on diesel and KSh4.92 on petrol, Epra said the sharp upward adjustment has been driven by elevated global crude oil prices and rising transport costs, particularly following disruptions along the Strait of Hormuz, a key international oil shipping route.
Acting Director General of Epra, Mr Joseph Oketch, said the government has also reduced Value Added Tax from 16 per cent to 13 per cent on petroleum products in an effort to cushion consumers.
“This intervention is aimed at protecting consumers from the steep increase in import costs arising from higher global prices,” he said in a statement issued on Tuesday night.
Official data shows that the landed cost of diesel rose by 68.72 percent to $1,073.2 per cubic metre, while petrol increased by 41.53 percent to $823.87. Kerosene recorded the steepest rise at 105.15 percent, reaching $1,311.93 in March 2026.
The increases are expected to push up inflation and the cost of living, as manufacturers, service providers and the power generation sector pass on higher costs to consumers. Inflation rose slightly to 4.4 per cent last month, up from 4.3 per cent in February.
At the same time, Kenya’s Cabinet Secretary for Energy, Mr Opiyo Wandayi, said an oil shipment procured outside the government-to-government (G-to-G) arrangement, and at a higher cost, was not included in the current pricing structure.
He noted that the cargo, priced at KSh198,000 per metric tonne, would have added about KSh14 per litre to petrol prices.
The new prices will remain in force until May 14, 2026, amid continued pressure in global markets driven by geopolitical tensions in the Middle East.
Reports indicate that Iran has been targeting oil refining infrastructure in neighbouring states while also disrupting shipments through the Strait of Hormuz, a route that handles around 20 per cent of global oil flows.
Benchmark crude oil prices have now surpassed $100 per barrel, with insurance and freight costs continuing to rise sharply.
