Motorists across the country can breathe a small sigh of relief after the Energy and Petroleum Regulatory Authority (EPRA) announced that fuel prices will remain unchanged for the next 30 days.
In its latest monthly review released on Tuesday, the regulator confirmed that the maximum retail prices for Super Petrol, Diesel, and Kerosene will stay at their current levels for the period between July 15 and August 14, 2026.
For motorists in Nairobi, this means Super Petrol will continue to retail at Sh214.03 per litre, Diesel at Sh222.86 per litre, and Kerosene at Sh191.38 per litre.
The decision comes as a welcome reprieve for many Kenyans who have been grappling with high living costs, especially those in the transport and farming sectors who rely heavily on fuel to keep their businesses running.
Government Intervention Keeps Prices Stable
According to EPRA, the decision to retain pump prices was necessitated by continued volatility in international oil markets, particularly the uncertain situation in the Middle East.
The regulator noted that the government has stepped in with two key interventions to shield consumers from further price hikes.
First, the government has extended the eight per cent Value Added Tax (VAT) on petroleum products for an additional three months.
This follows an earlier decision by the National Treasury in April this year to reduce VAT from 16 per cent to eight per cent in a bid to cushion consumers from soaring fuel costs.
The extension means that motorists will continue to enjoy the lower tax rate until at least October 2026.
Second, the government has utilised Sh945 million from the Petroleum Development Levy (PDL) Fund to ensure pump price stability.
The PDL Fund is typically used to subsidise fuel prices during periods of high international prices, and this latest drawdown is aimed at keeping costs affordable for ordinary Kenyans.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi assured the public that these interventions reflect the government's broader commitment to protecting consumers and supporting businesses during these challenging times.
He also maintained that the country has sufficient fuel stock and an uninterrupted supply of the commodity under the Government-to-Government arrangement, despite disruptions in the Strait of Hormuz caused by the resumption of war between Iran and the United States.
International Prices Remain Volatile
The regulator attributed the stable local prices to the government's intervention, even as international oil markets continue to experience significant fluctuations.
According to EPRA data, the average landed cost of imported Super Petrol stood at US$886.92 per cubic metre in June 2026, while Diesel averaged US$984.37 per cubic metre, and Kerosene averaged US$1,028.17 per cubic metre during the same period.
A closer look at the trends in international petroleum prices over the past year reveals just how volatile the market has been.
In March 2026, Super Petrol prices in the international market shot up to US$1,060.01 per metric tonne, while Diesel reached a staggering US$1,363.78 per metric tonne, and Kerosene peaked at US$1,542.55 per metric tonne.
These spikes were largely driven by geopolitical tensions and supply chain disruptions.
However, prices have since moderated, with Super Petrol dropping to US$948.65 per metric tonne in June 2026, Diesel falling to US$889.55 per metric tonne, and Kerosene declining to US$951.48 per metric tonne.
Despite this moderation, the market remains unpredictable, and the government has chosen to err on the side of caution by maintaining stable pump prices.
The exchange rate between the US dollar and the Kenyan shilling has also remained relatively stable over the past year, hovering between Sh122 and Sh130 per dollar.
In June 2026, the exchange rate stood at Sh129.75 per dollar, which has helped contain the cost of importing refined petroleum products.
What This Means for Consumers
The decision to maintain fuel prices is expected to provide much-needed certainty for transport operators, manufacturers, and households across the country.
Diesel remains Kenya's primary commercial fuel, powering public transport, freight movement, agriculture, construction, and industrial activities. Any increase in diesel prices would have a ripple effect on the cost of doing business, ultimately pushing up the prices of goods and services.
Transport operators, in particular, have been hit hard by rising fuel costs in recent months. In May, diesel prices in Nairobi surged above Sh240 per litre, sparking public outrage and a nationwide transport sector strike.
The government's intervention, which included a Sh10 per litre reduction in diesel prices during the previous review, helped calm tensions and restore some normalcy.
The current price freeze builds on that relief, giving businesses and consumers a stable outlook for the next month. For farmers, who rely on diesel to power irrigation pumps and tractors, the stable prices will help keep food production costs in check.
For households, particularly those in rural areas that depend on kerosene for lighting and cooking, the unchanged price of Sh191.38 per litre will bring some measure of relief.
A History of Price Volatility
The current stability comes after months of turbulence in Kenya's fuel market. In April, EPRA announced one of the sharpest fuel price increases in recent years, raising petrol by Sh28.69 per litre and diesel by Sh40.30 per litre.
The increases were driven by surging global oil prices and supply disruptions linked to the Middle East conflict.
Although a subsequent reduction in fuel taxes helped lower pump prices later that month, the relief proved short-lived.
In May, EPRA again raised petrol prices by Sh16.65 per litre and diesel by Sh46.29 per litre, pushing diesel prices in Nairobi above Sh240 per litre.
The sharp increases sparked protests and a nationwide transport sector strike, with operators arguing that soaring fuel costs had made it difficult to sustain operations.
In response, President William Ruto's administration pledged to reduce diesel prices by Sh10 per litre beginning with the June-July pricing cycle, a move aimed at easing the burden on public transport operators, businesses, and consumers.
The government has spent billions of shillings on fuel subsidies in recent months as it seeks to shield Kenyans from the full impact of rising global energy prices.
Looking Ahead
EPRA reviews fuel prices every month based on movements in international petroleum prices, the exchange rate, the cost of importing refined petroleum products, and applicable taxes and levies.
The purpose of the Petroleum Pricing Regulations is to cap the retail prices of petroleum products so that importation and other prudently incurred costs are recovered while ensuring reasonable prices to consumers.
For now, motorists can enjoy some stability at the pump, but the situation remains fluid. The Middle East conflict continues to create uncertainty in global oil markets, and any escalation could quickly reverse the current trend.
However, with the government's commitment to subsidising prices and extending tax relief, Kenyans can hope for continued stability in the coming months.
As Dr. Joseph Oketch, the Acting Director General of EPRA, assured the public, the authority remains committed to the observance of fair competition and the protection of the interests of both consumers and investors in the energy and petroleum sectors.
For now, that commitment translates into stable fuel prices and some much-needed relief for hard-pressed Kenyans.
The unchanged prices mean that motorists will continue paying the rates introduced in the previous review, when EPRA reduced diesel by Sh10 per litre, lowered Super Petrol by Sh0.22, and left kerosene prices unchanged.
Whether this stability will hold beyond the next 30 days remains to be seen, but for now, Kenyans can fill their tanks without fear of an immediate price hike.
0 Comments