Relief for Kenyans as EPRA announces reduced fuel prices

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The government has extended relief to motorists and industries with a Sh5 drop in diesel prices in the latest fuel pricing cycle.

The prices of super petrol and kerosene have, however, been retained as they are by the Energy and Petroleum Regulatory Authority (EPRA).

As such, a litre of diesel will retail at Sh217.86 in Nairobi while super petrol remains at Sh214.03 a litre and kerosene Sh191.38 a litre.

“In the period under review, the maximum allowed petroleum pump prices for diesel decreases by Sh5/litre while the price of super petrol and kerosene remain unchanged due to additional government stabilisation support measures of Sh938 million,” said EPRA Acting Director General Dr Eng Joseph Oketch.

The drop is seen as a move by the government to tame runaway inflation that settled at 6.5 per cent in July. The drop may result in softening of prices of industrial based commodities, particularly food items.

This is considering that food inflation is a significant contributor to spikes in the overall inflation figures.

In July, while overall inflation stood at 6.5 per cent, a rise from 6.4 per cent in June, food inflation went up to 9.0 per cent from 8.6 per cent in June. Transport costs had the most spike at 15.6 per cent when compared to July 2025.

“Annual consumer price inflation was 6.5 per cent in July 2026, as measured by the Consumer Price Index (CPI). This implies that the general price level was 6.5 per cent higher in July 2026 than it was in July 2025,” said the Kenya National Bureau of Statistics (KNBS) in its CPI release for July.

It adds: “The price increase was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (9.0 per cent)); transport (15.6 per cent), and housing, water, electricity, gas and other Fuels (3.2 per cent) over the one-year period.”

Besides the government relief of Sh938 million that informed the prices, EPRA notes in the release that the landing cost of diesel dropped by 13.08 per cent in June to Sh111,226 (USD855) per cubic metre. Kerosene also dropped by 11.01 per cent to Sh118,951 (USD 915.01) per cubic metre.

Super petrol, however, went up 6.99 per cent to Sh123,359 (USD948.92).

The current prices are less of eight per cent Value Added Tax (VAT), which is part of the relief the government extended to industry players amid challenges of imports due to the conflict between the United States and Iran. This geopolitical conflict resulted in the blockade of the Strait of Hormuz, a key passage for imports destined for the continent.

The government has, however, touted its government-to-government (G2G) deal with Saudi Arabia and the United Arab Emirates  (UAE), saying this arrangement on petroleum imports has ensured stable supply to the country.

In July, Energy and Petroleum Cabinet Secretary Opiyo Wandayi announced that the government has extended the eight per cent VAT relief, down from 16 per cent, for another three months, which is expected to expire on October 14.