KEY POINTS
- Kenya has increased retail fuel prices sharply, with petrol rising to 214.25 shillings per litre due to global crude supply pressures.
- Authorities say the price hike is linked to rising oil costs triggered by the ongoing Middle East conflict involving Iran.
- The country, which depends heavily on imported fuel from the Middle East, faces continued inflationary pressure on energy costs.
Kenya has announced a significant increase in retail fuel prices, raising them by as much as 23.5% following continued volatility in global oil markets linked to tensions in the Middle East.
The Energy and Petroleum Regulatory Authority (EPRA) said the adjustment takes effect for the pricing period between May 15 and June 14, with further revisions expected in the next cycle.
Under the new pricing structure, petrol will now sell at 214.25 Kenyan shillings ($1.66) per litre, up from 206.97 shillings, while diesel has risen sharply to 242.92 shillings from 196.63 shillings. Kerosene prices, however, remain unchanged at 152.78 shillings per litre.
The increase follows a previous 24.2% rise last month, underscoring sustained pressure on Kenya’s energy market.
Officials attributed the latest adjustment to squeezed global crude supplies and rising energy costs linked to the ongoing conflict in the Middle East, particularly tensions involving Iran.
The situation has disrupted global oil flows and contributed to higher international crude benchmarks, forcing import-dependent economies like Kenya to adjust domestic prices.
Heavy Reliance on Imported Fuel
Kenya imports nearly all of its petroleum products, mainly from the Middle East, through government-to-government supply agreements.
Because of this dependency, fluctuations in global oil prices are quickly transmitted into domestic fuel costs, directly affecting transport, food prices, and overall inflation.
Analysts warn that continued instability in global oil markets could further strain household budgets and increase the cost of doing business in the country.
The repeated fuel price increases are expected to add pressure on Kenya’s inflation rate, particularly in transport and logistics sectors.
Economists say sustained high energy costs could slow economic activity if the global oil market remains unstable in the coming months.
Authorities are expected to continue reviewing prices monthly, depending on international crude movements and exchange rate conditions.
