The Energy and Petroleum Regulatory Authority (EPRA) has announced a Ksh5 reduction in diesel prices effective from midnight on August 15, 2026, until September 14, 2026. This move aims to ease costs for businesses and transport operators amid fluctuating global oil markets.
New Fuel Prices in Nairobi
- Super Petrol: Ksh214.03 per litre (unchanged)
- Diesel: Ksh217.86 per litre (down from Ksh222.86)
- Kerosene: Ksh191.38 per litre (unchanged)
These prices represent the maximum retail rates permitted at fuel stations across Nairobi.
Government Stabilization Measures
EPRA attributed the steady prices of Super Petrol and kerosene to government interventions amounting to Ksh938 million. These measures have helped cushion consumers from international petroleum price volatility. The government has also extended an 8% VAT arrangement on petroleum products for an additional three months, further limiting price fluctuations.
Context of Price Changes
Earlier this year, fuel prices surged significantly, with diesel hitting a record Ksh242.92 per litre in May-June. The recent reduction follows a period of stabilization supported by government subsidies and easing global crude prices. Brent crude recently dropped to around $87.07 per barrel, influencing the downward adjustment.
Impact on Transport and Cost of Living
The diesel price cut is expected to benefit sectors reliant on diesel, including public transport, freight, agriculture, and industry. Since fuel costs affect transport fares and goods prices, the reduction may help lower the cost of living if savings are passed on to consumers. Previous fuel hikes led to fare increases on some routes, such as those operated by Ena Coach.
