NAIROBI, Oct 15 – Kenya has raised its maximum retail prices for petrol and diesel, citing higher fuel import costs linked to the conflict in the Middle East, as the country remains heavily dependent on supplies from the region.
The Energy and Petroleum Regulatory Authority increased petrol prices by 6% and diesel prices by 4.5% in its latest monthly review, with the new rates applying from October 15 to November 14.
In Nairobi, a litre of diesel will cost 227.76 Kenyan shillings ($1.76), up from 217.86 shillings. Kerosene prices will rise more sharply, increasing to 219.87 shillings per litre from 191.38 shillings.
The increases reflect higher international procurement costs at a time when geopolitical tensions are affecting energy markets. Kenya sources nearly all its fuel supplies from the Middle East, leaving domestic prices exposed to changes in regional supply conditions and global oil prices.
Government Extends Fuel Tax Relief
Alongside the price adjustments, the government extended a reduction in value-added tax on fuel to 8% from the standard 16% until January 14, seeking to cushion consumers against rising costs.
The tax measure offers partial relief, although higher regulated pump prices are likely to increase expenses for households and businesses that rely on fuel for transport, power generation and logistics.
Fuel prices also have implications for agriculture and construction, where diesel is widely used in machinery, freight and other operations. Higher energy costs can feed into the prices of goods and services, adding to inflationary pressures across the economy.
The latest increase highlights Kenya’s exposure to imported energy costs and the challenge of balancing fuel affordability with shifts in international markets. The regulator is scheduled to announce the next round of maximum retail prices on November 14.
