This marks the steepest increase since September 2023.

In its latest review, EPRA confirmed that the price of petrol has gone up by 70 United Staes (US) cents to $1.44 (KSh185) per litre. Diesel has increased by 67 US cents to $1.33 (KSh166), while kerosene is up by 75 US cents to $1.21 per litre. The new prices are expected to have a ripple effect on the cost of transport, manufacturing, and basic goods, adding further pressure on Kenyan households.

The government has partly blamed the increase on global tensions, particularly the recent conflict between Israel and Iran. However, energy experts and commentators in Kenya are raising questions about this reasoning. Local journalist Alex Kairie pointed out that global oil prices have actually eased slightly following the de-escalation in the Middle East, but the benefits are not being felt locally.

“If you look at the international market, prices have dropped after the end of the conflict, but here in Kenya, fuel costs continue to climb,” Kairie said. “This has more to do with domestic policies than international events.”

At the centre of the controversy is Kenya’s oil supply arrangement with three Gulf nations – Saudi Arabia, the United Arab Emirates, and Abu Dhabi. Under this agreement, Kenya imports fuel on credit, repaying months after delivery, which has kept prices high at between $76 and $84 per barrel.

Kairie explained that the high retail prices are further driven by taxes and levies. “By the time the fuel reaches local pumps, the taxes make up nearly half the price. Petrol lands in Kenya at roughly KSh76 per litre but is sold at over KSh180,” he said.

The latest price hike has triggered frustration among motorists, businesses, and civil society groups. Many accuse the government of using global events as a scapegoat while relying heavily on fuel taxes to raise revenue. With businesses struggling and consumers facing rising living costs, the fuel increase is likely to worsen the economic hardship for many.

--ChannelAfrica--