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Wandayi blames Middle East conflict for surge in fuel import costs

TAccording to the ministry, the average landed cost of imported Super Petrol increased by 10 percent between March and April 2026, while Diesel recorded a rise of more than 20 percent over the same period. Kerosene posted a smaller increase during the review window

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has linked the latest rise in fuel prices to the ongoing conflict in the Middle East, saying the crisis has disrupted global oil markets and pushed up the cost of importing petroleum products into the country.


In a statement announcing the fuel price review for the period between May 15 and June 14, 2026, Wandayi said the conflict has created instability in international energy markets, resulting in higher crude oil prices, freight charges, insurance premiums, and overall supply chain costs.


“The conflict has destabilized international energy markets, leading to higher crude oil prices, freight charges, insurance premiums and supply chain costs worldwide.”


He noted that Kenya, being a net importer of petroleum products, remains highly exposed to global shocks that are beyond its control and directly affect local pump prices.


“The Ministry of Energy and Petroleum noted that Kenya, as a net importer of petroleum products, remains heavily exposed to global market shocks,” he stated.


According to the ministry, the average landed cost of imported Super Petrol increased by 10 percent between March and April 2026, while Diesel recorded a rise of more than 20 percent over the same period. Kerosene posted a smaller increase during the review window.


To shield consumers from sharper price hikes, Wandayi said the government has deployed about Sh5 billion through the Petroleum Development Levy (PDL) stabilization mechanism to help moderate the cost of Diesel and Kerosene.


The government also maintained Kerosene prices at current levels to protect households that depend on it for cooking and lighting, especially in lower-income areas.


Wandayi further said the government is holding discussions with stakeholders in the energy, transport, manufacturing, and business sectors to identify practical measures that can help reduce the pressure of rising fuel costs on the economy.


“The Government continues to closely monitor developments in the international oil market while ensuring stable and uninterrupted fuel supply across the country.”


He also defended the Government-to-Government fuel import arrangement, saying it has helped cushion Kenya from rising global freight and premium charges, which have surged due to tensions around key shipping routes such as the Strait of Hormuz.


The ministry added that global shipping disruptions have increased insurance and transport costs, further tightening pressure on fuel-importing countries.


Despite the volatility, the government assured that fuel supply remains stable and adequate across the country, with continued monitoring of global oil market movements to respond to any further changes.

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