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EPRA reveals why fuel prices could rise further in Kenya

Kenyans could be forced to spend more on fuel in the coming months if the ongoing conflict in the Middle East continues to affect global petroleum supplies, Energy and Petroleum Regulatory Authority (EPRA) Director-General Edward Mwirigi has warned.

Speaking before the Special Funds Accounts Committee on Thursday, October 15, Mwirigi linked the latest increase in fuel prices to supply disruptions in the Gulf region, where attacks on fuel infrastructure and vessels have affected petroleum shipments.

The warning comes a day after EPRA announced a sharp increase in petrol, diesel and kerosene prices, adding pressure on households, businesses and transport operators already struggling with the high cost of living.

Under the new prices announced on Wednesday, October 14, a litre of petrol in Nairobi will retail at Ksh226.96, while diesel will cost Ksh227.76.

Kerosene prices have also increased to Ksh219.87 per litre.

Mwirigi explained that the disruption had forced fuel importers to look for alternative sources of petroleum products, including Singapore, where prices were reportedly higher.

The increased cost of sourcing fuel has contributed to the rise in prices passed on to consumers.He cautioned that the situation could worsen if the conflict continues to disrupt supply routes and affect international petroleum markets.

During the committee session, Members of Parliament questioned EPRA over the latest increase, particularly in light of President William Ruto’s assurances in May 2026 that fuel prices would remain stable.

Lawmakers also sought clarification on whether Kenyans had been informed about the supply challenges, including reports that two fuel vessels had been bombed.

In his response, Mwirigi said Saudi vessels had been targeted, pointing to the security challenges affecting fuel shipments from the region.

He maintained that Kenya’s fuel prices remained competitive compared with those of neighbouring countries despite the rising cost of imports.

On Wednesday, the EPRA chief described September as the worst month for fuel prices since the conflict began, citing a significant increase in the international cost of petroleum products.

โ€œSeptember has been the worst month ever since this war broke out. Super petrol has reached USD 1,300 per metric tonne from the initial USD $600 per metric tonne,โ€ Mwirigi told journalists on October 14.

The increase in international prices has raised concerns about the wider impact on the Kenyan economy, particularly transport costs and the prices of goods and services that depend on fuel.

Meanwhile, the National Assembly has passed the Tax Laws (Amendment) Bill, 2026, seeking to retain the reduced 8 per cent Value Added Tax (VAT) rate on petrol, diesel and kerosene for another three months.

The Bill, sponsored by Majority Leader Kimani Ichungโ€™wah, seeks to prevent the rate from returning to the standard 16 per cent, offering temporary relief to consumers amid rising fuel costs.

However, transport operators have already signalled possible fare increases following the latest EPRA review.

The Matatu Owners Association has advised operators to consider raising fares by up to 10 per cent, a move that could further increase the daily expenses of commuters if implemented.

With global petroleum prices remaining under pressure, Kenyans may continue to face higher transport and living costs if the supply disruptions persist.