Fuel Shock: EPRA hikes petrol by Sh12.93, diesel by Sh9.90 and kerosene by Sh28.49

Kenyan households and businesses face fresh cost-of-living pressure after the Energy and Petroleum Regulatory Authority (EPRA) announced sharp fuel price increases, threatening to raise transport, food, and production costs.

The regulator raised the price of a litre of super petrol by Sh12.93, diesel by Sh9.90 and kerosene by Sh28.49 in its latest monthly review, with the new rates taking effect at midnight.

The increases will raise the cost of commuting for motorists and could feed into higher fares and the cost of transporting goods, potentially reversing gains from easing inflation.

According to EPRA's latest price schedule, Nairobi's maximum retail prices are Sh226.96 per litre for super petrol, Sh227.76 for diesel and Sh219.85 for kerosene.

EPRA Director-General Edward Mwirigi Kinyua attributed the increases to the escalating conflict in the Middle East, which has disrupted petroleum supply chains and pushed up international fuel import costs.

The impact is particularly significant for kerosene-dependent households, which are already grappling with high food and other essential expenses.

Diesel prices also have wide economic implications because the fuel powers much of the country's freight transport and public service vehicle sector.

The new prices will take effect from October 15 to November 14, 2026, and will determine the maximum amounts that dealers can charge motorists and other consumers in Nairobi during the period.

In other major towns, prices vary depending on transportation costs and other factors used in determining the maximum retail rates.

The latest review comes amid continued public scrutiny of fuel prices and their impact on the cost of living, with petroleum products influencing transport fares, electricity generation costs and the prices of goods and services.

The latest review compares with the previous prices, which remained unchanged in the September 15 to October 14 pricing period despite a decline in the cost of importing petrol.

During that period, motorists in Nairobi paid up to Sh214.03 per litre for super petrol, Sh217.86 for diesel, and Sh191.36 for kerosene.

Kenya's petrol import costs fell by nearly eight per cent in the preceding pricing cycle, but the reduction did not translate into lower pump prices, as EPRA retained the existing rates.

The regulator's monthly reviews consider the cost of imported petroleum products, along with other components used to calculate the maximum retail prices.

The latest announcement also comes against the backdrop of sharp fuel price increases earlier this year, when pump rates climbed above levels recorded during the 2022 global energy crisis.

In April 2026, EPRA raised Nairobi's maximum petrol price to Sh206.97 per litre and diesel to Sh206.84.

In May, petrol was set at Sh214.25 per litre, while diesel rose to Sh242.92.

The May diesel price was significantly higher than the rate in the preceding month, highlighting the volatility that has characterised the petroleum market this year.

The latest review underscores Kenya's vulnerability to external oil-market shocks, as the country imports its petroleum requirements in refined form.

Middle East conflict drives fuel price increases

EPRA Director-General Edward Mwirigi Kinyua attributed the increases to disruptions in international petroleum supply routes linked to the escalating conflict in the Middle East, which have driven up the cost of importing fuel.

The disruption has heightened concerns over the movement of petroleum cargoes through strategic shipping corridors, including the Red Sea and the Strait of Hormuz, increasing pressure on international oil prices, shipping costs and insurance premiums.

Kenya imports refined petroleum products, leaving domestic pump prices exposed to changes in international market prices and the cost of delivering fuel to the country.

The pressure was also reflected in import costs reported by Energy and Petroleum Cabinet Secretary Opiyo Wandayi. The cost of importing Super Petrol on a Cost, Insurance and Freight (CIF) basis at Mombasa rose from Sh155,511 per tonne in August to Sh179,525 in September.

Diesel import costs rose from Sh155,640 to Sh170,194 per tonne over the same period, indicating higher costs the secure petroleum supplies.

International crude prices also climbed on Wednesday amid renewed concerns about Middle East security and the safety of oil shipments. Brent crude futures rose to US$105.83 per barrel, while US West Texas Intermediate crude reached US$94.71 during morning trading, according to Reuters.

Government assures consumers of adequate fuel supplies

Despite the rising import costs, the government has maintained that Kenya has sufficient petroleum stocks to meet domestic demand.

On October 13, Wandayi said imported fuel cargoes were arriving and being offloaded as scheduled, assuring consumers that the Middle East conflict had not interrupted supplies at local fuel stations.

“Our stock position is adequate, cargoes are arriving and offloading on schedule, and fuel has remained available at the pump in every county, without a single day of interruption,” Wandayi stated.

The government has also sought to cushion consumers against the impact of rising petroleum costs by pursuing an extension of the reduced 8 per cent Value Added Tax (VAT) on petroleum products for another 90 days from October 15, 2026.

However, maintaining adequate supplies does not necessarily shield consumers from higher prices, as the monthly review reflects changes in import costs and other components used to calculate the maximum retail prices.

How the latest prices compare with the previous review

The latest increase reverses the stability seen in the previous pricing cycle, when EPRA retained pump prices from September 15 to October 14, 2026.

During that period, Nairobi motorists paid up to Sh214.03 per litre for Super Petrol and Sh217.86 for diesel, while kerosene retailed at about Sh191.38 per litre.

The unchanged rates came despite fluctuations in petroleum import costs, illustrating how changes in international prices do not always translate immediately into adjustments at the pump.

The latest review follows earlier increases in 2026, with Nairobi's maximum Super Petrol price reaching Sh206.97 per litre in April before rising to Sh214.25 in May. Diesel prices also fluctuated significantly during the period.

EPRA's monthly pricing mechanism considers the cost of imported petroleum products, along with other applicable charges, taxes, and regulatory components, when setting maximum retail prices.

The new rates set the ceiling that dealers can charge consumers during the review period, with prices varying across the country depending on location-specific distribution and transport costs.

With fuel a major input in transport, agriculture, manufacturing, and distribution, the latest adjustment is likely to renew scrutiny of the government's efforts to contain the cost of living as international energy markets remain volatile.