Explained: What triggered the latest fuel hike
National
By
Fred Kagonye
| May 15, 2026
Energy Cabinet Secretary Opiyo Wandayi has defended the latest fuel price increase, attributing it to volatility in global oil markets caused by conflict in the Middle East.
In a statement on Friday, Wandayi said ongoing geopolitical tensions had disrupted global energy markets, driving up crude oil prices, freight charges and supply chain costs.
“The continued geopolitical tensions in the region have disrupted global energy markets, leading to a sharp increase in international crude oil prices, elevated freight and supply chain costs, and increased uncertainty in petroleum product availability,” he said.
His remarks come hours after the Energy and Petroleum Regulatory Authority (EPRA) increased the prices of diesel and petrol by Sh46.29 and Sh16.65 per litre, respectively.
The Energy CS said Kenya, as a net importer of petroleum products, remains vulnerable to fluctuations in the international market.
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According to the ministry, the average landed cost of imported super petrol rose by 10 per cent, from $823.27 per cubic metre in March 2026 to $906.23 in April.
Diesel recorded the sharpest increase, rising by 20.32 per cent from $1,073.82 to $1,291.98 per cubic metre over the same period. Kerosene rose marginally by 1.59 per cent, from $1,311.93 to $1,332.73 per cubic metre.
Despite the rise in kerosene import costs, retail prices remained unchanged after government intervention.
Wandayi said the government used the Petroleum Development Levy stabilisation mechanism to cushion consumers against higher diesel and kerosene prices.
“Approximately Sh5 billion has been applied to moderate the extent of price increases while ensuring stability within the petroleum supply chain."
He added that the reduction of VAT on petroleum products from 16 per cent to 8 per cent had also helped prevent steeper price increases.
The CS further cited increased insurance premiums linked to tensions around the Strait of Hormuz, a critical global oil transit route, as another factor pushing up import costs.
He added tgag the government-to-government fuel import framework had helped shield Kenya from higher freight charges and insurance premiums affecting global markets.
“Supply and demand imbalances across the world continue to be observed, leading to very high volatility in prices coupled with limited availability of cargoes,” Wandayi said, assuring Kenyans that the country had adequate fuel stocks and said the government was monitoring developments in the international market.
He further added that the ministry was working with stakeholders in the energy, transport and manufacturing sectors to identify measures to reduce the impact of rising fuel costs on consumers. “We should all remain vigilant against possible profit-driven exploitative practices during this period of uncertainty."