Kenyan Fuel Prices Rise Amid Global Market Volatility
In early April 2025, motorists across Nairobi faced a noticeable jump at the pump after the Energy and Petroleum Regulatory Authority (EPRA) revised the retail prices of premium petrol and diesel. Premium gasoline now sells for Ksh 214.25 per litre, while diesel costs Ksh 242.92 per litre. Kerosene remained unchanged at Ksh 152.78 per litre. The adjustments follow a period of heightened turbulence in the international oil market, driven largely by the ongoing conflict in the Middle East and its ripple effects on global supply chains.
Price Adjustments Announced by EPRA
EPRA’s Friday statement revealed that premium petrol was increased by Ksh 16.65 per litre and diesel by Ksh 46.29 per litre. The agency attributed the changes to prevailing global market conditions, exchange‑rate pressures, and higher supply‑chain costs. Kerosene’s price was left untouched to protect households that rely on it for cooking and lighting.
Statement from Energy Cabinet Secretary Opiyo Wandayi
Addressing public concern, Energy Cabinet Secretary Opiyo Wandayi emphasized that Kenya, as a net importer of petroleum products, cannot insulate itself from external shocks. He noted that geopolitical tensions have disrupted shipping routes, especially around the Strait of Hormuz, leading to higher freight and insurance premiums. Wandayi explained that the average purchase cost of imported premium gasoline rose from US $823.27 per tonne in March to US $906.23 in April—a 10 % increase—while diesel climbed 20.32 % from US $1,073.82 to US $1,291.98 per tonne over the same period. Kerosene saw a modest 1.59 % rise.
Underlying Drivers of the Increase
- Crude oil prices: Brent crude averaged US $89 per barrel in April 2025, up from US $81 in March, according to the World Bank’s Commodity Markets Outlook.
- Freight costs: Spot freight rates for petroleum cargoes more than doubled compared with the first quarter of 2025, reflecting heightened risk premiums for shipments transiting the Gulf of Aden.
- Insurance premiums: Marine war risk insurance surged amid fears of escalation in the Strait of Hormuz, adding to the landed cost of imported fuels.
- Exchange‑rate pressure: The Kenyan shilling weakened slightly against the US dollar in April, further inflating the local price of dollar‑denominated imports.
Government Mitigation Measures
To blunt the impact on consumers, the Ministry of Energy activated the Petroleum Development Levy (PDL) stabilization mechanism, allocating approximately Ksh 5 billion to subsidize diesel and kerosene prices in the current review cycle. The government also highlighted its ongoing Government‑to‑Government (G‑to‑G) agreements for refined petroleum imports, which lock in freight and premium costs and shield Kenya from the full brunt of spot‑market spikes.
Jet fuel prices were held steady to protect sectors such as aviation and agriculture that depend on kerosene‑based products for domestic use.
Outlook and Consumer Advice
The Ministry affirmed that national fuel stocks remain adequate and that it continues to monitor developments in the international oil market. Consultations are underway with stakeholders from transport, manufacturing, and economic sectors to identify additional measures—such as targeted tax relief or expanded use of alternative fuels—that could ease the burden on households.
For consumers, the advice remains to plan trips efficiently, maintain vehicles for optimal fuel economy, and stay informed through official EPRA updates and reputable news outlets.
