From Ksh107 to Ksh206: Why Fuel Prices Have Nearly Doubled in Kenya
Kenyans are currently facing one of the sharpest increases in fuel prices in recent times, with petrol now retailing at about Ksh206.97 per litre. This is happening even though the actual base cost of fuel is estimated at around Ksh107 per litre.
This huge difference has left many motorists and households questioning why fuel has become so expensive and what exactly is driving the constant increases.
According to the Energy and Petroleum Regulatory Authority (EPRA), the new fuel prices announced for the April–May 2026 pricing cycle show a significant upward adjustment.
Super Petrol increased by Ksh28.69 per litre, while Diesel went up by Ksh40.30 per litre. Kerosene, however, remained unchanged in this cycle.
In Nairobi, the updated maximum pump prices now stand at Ksh206.97 for Super Petrol, Ksh206.84 for Diesel, and Ksh152.78 for Kerosene.
These figures mean that both petrol and diesel have now crossed the Ksh200 mark, a psychological and economic threshold that has caused widespread concern among Kenyans, especially transport operators, businesses, and households relying heavily on fuel.
Across social media and public discussions, many people have been asking one key question: why are fuel prices rising so sharply despite global oil fluctuations and government controls?
A closer look at EPRA’s pricing breakdown helps explain how the final pump price is built from several layers of costs, taxes, and charges that accumulate along the supply chain.
At the foundation, the base cost of fuel is about Ksh107 per litre. However, this is only the starting point and does not reflect the full cost that consumers eventually pay at the pump.
One of the biggest factors influencing the increase is the landed cost of imported petroleum products, which rose sharply during the latest pricing review period.
For example, Super Petrol’s landed cost increased by 41.53%, moving from Ksh75,237.72 (about US$582.11) to Ksh106,485.20 (about US$823.87) per cubic metre. Diesel saw an even steeper rise of 68.72%, increasing from Ksh82,261.16 (US$636.45) to Ksh138,711.10 (US$1,073.20).
Kerosene recorded the highest jump at 105.15%, rising from Ksh82,652.79 (US$639.48) to Ksh169,566.95 (US$1,311.93). These increases show strong pressure from the global oil market, exchange rates, and international supply conditions.
However, the landed cost is only the first stage. Once fuel arrives in Kenya, it goes through a long chain of additional charges before reaching consumers. These include taxes, levies, transport costs, storage fees, and profit margins for various players in the supply chain.
Once fuel is landed, EPRA indicates that the initial product cost stands at about Ksh107.23 for petrol, Ksh133.89 for diesel, and Ksh170.86 for kerosene.
From this point, several additional charges begin to accumulate. Pipeline transport costs, delivery losses, and storage fees are added, increasing the price further before the fuel even reaches wholesalers and retailers.
Dealers and retailers also add their margins, averaging about Ksh11.25 per litre across petrol, diesel, and kerosene. Wholesalers also include their margins, which are around Ksh6.14 for petrol, Ksh6.06 for diesel, and Ksh5.99 for kerosene.
Combined, these margins alone push the price upward by approximately Ksh17.39 for petrol, Ksh17.31 for diesel, and Ksh17.24 for kerosene.
On top of this, the government applies excise duty, which adds Ksh21.95 per litre on petrol and Ksh11.37 per litre on both diesel and kerosene.
These taxes significantly increase the final pump price and form a major part of the cost burden faced by consumers.
Additional costs such as distribution expenses also contribute, adding roughly Ksh4.93 for petrol, Ksh4.66 for diesel, and Ksh4.75 for kerosene.
At the same time, oil marketing companies apply further charges and operational margins, which add another Ksh17.39 for petrol, Ksh17.31 for diesel, and Ksh17.24 for kerosene.
Even though the government has introduced a fuel price stabilisation mechanism to reduce sudden shocks, the system is currently running with deficits.
These stabilisation gaps stand at Ksh4.68 for petrol, Ksh23.92 for diesel, and Ksh108.10 for kerosene, meaning the cushioning effect is not fully offsetting the rising costs.
In addition, several other statutory levies continue to apply along the supply chain. These include the Merchant Shipping Levy, Import Declaration Fee, Railway Development Levy, and Value Added Tax (VAT), which was recently adjusted from 16% to 13%.
While the reduction in VAT offers some relief, it is still not enough to counterbalance the many other rising costs.
When all these components are added together—landed cost, taxes, levies, transport charges, storage fees, margins, and stabilisation gaps—the final retail price rises sharply.
Total taxes and levies alone now amount to about Ksh82.09 for petrol, Ksh74.90 for diesel, and Ksh68.03 for kerosene.
This full accumulation of costs explains why fuel that initially costs around Ksh107 per litre at the import stage eventually ends up retailing at about Ksh206.97 in Nairobi.
The pricing structure shows that the final cost is not driven by a single factor, but rather a combination of global oil prices, currency pressures, and a long list of domestic taxes and supply chain charges that steadily push the price upward.
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