The Energy and Petroleum Regulatory Authority (Epra) has revised fuel prices in Kenya upwards, effective from 15 June 2025 to 14 July 2025.
The maximum price for Super Petrol increased by Ksh 2.69 per litre to Ksh 177.32, while Diesel and Kerosene prices decreased by Ksh 1.95 and Ksh 2.06 per litre, respectively, to Ksh 162.91 and Ksh 146.93 per litre.
Landed Cost Trends
The average landed cost per cubic metre for Super Petrol rose slightly by 0.35% from USD 588.16 in April 2025 to USD 590.24 in May 2025.
In contrast, the landed costs for diesel and kerosene declined by 2.42% and 5.14%, respectively, to USD 580.23 and USD 569.00 per cubic metre over the same period.
The Kenyan Shilling remained relatively stable against the US Dollar, appreciating marginally from Ksh 129.78 in April to Ksh 129.52 in May 2025, which also influenced local fuel prices.
Government Stabilization Efforts
Fuel prices have stabilised recently due to the government’s petroleum pump price stabilisation mechanism, which expended Ksh 9.9 billion in FY 2023/24 to cushion price increases.
This, combined with the Kenyan Shilling’s relative strength and declining international fuel prices, has contributed to this stability. The government has, however, scrapped the petroleum price stabilisation subsidies, aligning with Kenya Kwanza’s policy to focus subsidies on productive sectors like agriculture rather than consumption subsidies.
Rising Fuel Demand
Over the May-June pricing cycle, the government subsidised Super Petrol by Ksh 2.20 per litre, Kerosene by Ksh 2.73, and Diesel by Ksh 0.28. Previously, in the April-May cycle, subsidies amounted to Ksh 6 per litre for Diesel and Ksh 4.66 for super petrol.
These subsidies were funded through the Petroleum Development Levy (PDL), where motorists pay Ksh 5.40 per litre of Super Petrol and Diesel, used to absorb sudden price surges.
The reduction in fuel prices over the past year, from over Ksh 200 per litre to current levels, has increased fuel demand by 2% in 2024, reaching 5.2 million tonnes. This trend reflects an improving economy, lower global oil prices, and government interventions through subsidies.
Looking ahead, fuel prices are expected to remain stable due to continued government efforts to mitigate petroleum costs via the pump price stabilisation mechanism and a stable exchange rate.
This stability is anticipated to improve the business environment, given fuel’s role as a major input cost, and help maintain inflation within the Central Bank of Kenya’s target range of 2.5% to 7.5% in the short to medium term.
