Fuel Prices Rise as Kenya Feels Impact of Global Oil Market Crisis
By Peace Muthoka
Nairobi, May 15, 2026 – Kenyans should prepare for higher fuel prices after the Government announced a new review of petroleum pump prices for the period between May 15 and June 14, 2026, citing continued instability in the global oil market caused by the ongoing conflict in the Middle East.
In a statement released on Friday, Energy and Petroleum Cabinet Secretary Opiyo Wandayi said rising geopolitical tensions have disrupted global energy markets, pushing up crude oil prices, freight charges and supply chain costs across the world.
The Ministry explained that Kenya, which relies heavily on imported petroleum products, remains vulnerable to global market shocks and fluctuations.
According to the latest review, the average landed cost of imported Super Petrol rose by 10 percent, increasing from USD 823.27 per cubic metre in March 2026 to USD 906.23 per cubic metre in April 2026.
Diesel recorded the sharpest increase, rising by 20.32 percent from USD 1,073.82 per cubic metre to USD 1,291.98 per cubic metre during the same period.
Kerosene prices, however, increased marginally by 1.59 percent from USD 1,311.93 per cubic metre to USD 1,332.73 per cubic metre.
The Ministry said the changes in pump prices reflect the rising global costs, exchange rate pressures and increased transportation expenses linked to international supply chain disruptions.
Despite the increase, the Government announced that kerosene prices will remain unchanged to protect low-income households that depend on the product for cooking and lighting.
To cushion consumers from the rising fuel costs, the Government said it has applied nearly KSh 5 billion through the Petroleum Development Levy stabilization mechanism to moderate increases in diesel and kerosene prices.
The Ministry further noted that several policy interventions introduced by the Government have helped reduce the pressure on consumers.
Among the measures highlighted was the reduction of Value Added Tax on petroleum products from 16 percent to 8 percent.
The Government also defended the Government-to-Government fuel importation framework, saying the arrangement has protected Kenya from soaring international freight charges and rising premiums on petroleum cargo.
According to the Ministry, global freight and insurance costs have more than doubled due to tensions around the Strait of Hormuz, exposing countries relying on spot market purchases to significantly higher import costs.
The Ministry added that Kenya continues to benefit from fixed freight and premium costs secured under the Government-to-Government fuel supply arrangement.
At the same time, the Government assured Kenyans that the country currently has sufficient petroleum stocks and that authorities are closely monitoring developments in the international oil market.
The Ministry said it is also engaging stakeholders in the energy, transport, manufacturing and business sectors to identify practical measures aimed at reducing the burden of rising fuel prices on consumers and businesses.
Further, the Government warned against exploitative business practices during the current period of uncertainty, urging players in the petroleum sector not to take advantage of consumers.
While acknowledging that no country is fully shielded from global geopolitical and energy market disruptions, the Government maintained that it remains committed to ensuring a stable and uninterrupted supply of petroleum products across the country.
The Ministry reiterated its commitment to delivering reliable, accessible and affordable energy to support economic growth, job creation and improved livelihoods for Kenyans.
