Gov’t blames Middle East conflict for latest fuel price hike, deploys KSh5 billion to cushion consumers

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Gov’t blames Middle East conflict for latest fuel price hike, deploys KSh5 billion to cushion consumers

The Ministry of Energy and Petroleum has explained the latest rise in fuel prices, pointing to sustained volatility in global oil markets driven by the ongoing conflict in the Middle East.

They stated this as the primary reason behind the adjustments effective May 15 to June 14, 2026.

In a statement signed by Energy and Petroleum Cabinet Secretary Opiyo Wandayi, the ministry said geopolitical tensions in the region have led to an increase in international crude oil prices, higher freight and supply chain costs, and growing uncertainty in petroleum product availability across global markets.

As a net importer of petroleum, Kenya remains directly exposed to these pressures.

The landed cost of Super Petrol rose by 10 per cent from USD 823.27 per cubic metre in March 2026 to USD 906.23 in April 2026, while Diesel jumped by 20.32 per cent from USD 1,073.82 to USD 1,291.98 per cubic metre over the same period. Kerosene increased marginally by 1.59 per cent.

As a result, the prices of Super Petrol and Diesel have been adjusted upward in line with global market conditions, exchange rate pressures, and increased supply chain costs. Kerosene prices, however, have been maintained at current levels through targeted government support, in recognition of the reliance on the product by low-income households.

To soften the blow on consumers, the government has deployed approximately Ksh 5 billion from the Petroleum Development Levy stabilisation mechanism to moderate the extent of the price increases for Diesel and Kerosene.

The government has also reduced VAT on petroleum products from 16 per cent to 8 per cent and continued to benefit from fixed freight and premium costs secured under the Government-to-Government fuel importation framework, which the ministry says has shielded Kenya from the even steeper costs faced by countries relying on spot market purchases.

The ministry assured Kenyans that the country has adequate petroleum stocks and that the government is closely monitoring developments in international oil markets.

It also said it is engaging stakeholders across energy, transport, manufacturing, and business sectors to identify practical measures to minimise the impact of rising fuel costs.

The ministry warned against exploitative pricing practices during this period of uncertainty, urging vigilance to ensure consumers are not placed at further disadvantage.

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