Kenya Hikes Fuel Prices Amid Middle East Oil Supply Disruptions

Kenya increases petrol and diesel prices sharply as Middle East tensions tighten global crude supply and raise energy costs.

Kenya has raised retail fuel prices for the second consecutive month, citing rising global crude oil prices and supply pressures linked to the escalating conflict in the Middle East.

The Energy and Petroleum Regulatory Authority (EPRA) announced Thursday that the new prices would take effect from May 15 to June 14.

Under the revised pricing template, the cost of petrol increased to 214.25 Kenyan shillings ($1.66) per litre from 206.97 shillings.

Diesel recorded an even sharper increase, rising to 242.92 Kenyan shillings per litre from 196.63 shillings, while the price of kerosene remained unchanged at 152.78 shillings per litre.

The latest adjustment follows another major increase last month, when fuel prices rose by as much as 24.2 per cent.

Kenya imports nearly all its refined petroleum products from the Middle East through government-to-government supply agreements with Gulf countries, leaving the East African nation highly exposed to disruptions in global oil markets.

Global energy prices have remained volatile amid ongoing tensions in the Middle East, a key hub for crude oil production and international shipping routes.

The conflict has tightened supply expectations, increased freight and insurance costs, and triggered fresh concerns among fuel-importing economies across Africa.

The rising fuel prices are expected to increase transport and electricity costs in Kenya, with possible knock-on effects on food prices and overall inflation in the coming weeks.

At the prevailing exchange rate, one US dollar currently exchanges for about 128.9 Kenyan shillings.