Why Fuel Prices Change in Kenya 2026: Understanding the Forces Behind Monthly Adjustments

enyans often experience changes in fuel prices every month, with pump prices for petrol, diesel and kerosene either increasing or decreasing depending on a combination of local and international factors.

The monthly reviews are conducted by the Energy and Petroleum Regulatory Authority (EPRA), which sets the maximum retail prices after considering the cost of importing fuel, exchange rates, taxes and distribution expenses across the country.

One of the biggest determinants of fuel prices is the global oil market. Since Kenya imports all its petroleum products, any increase in international crude oil prices directly affects the cost of fuel landing in the country. When global prices fall, consumers may also benefit from lower pump prices.

The value of the Kenyan shilling against the US dollar also plays a critical role. Petroleum imports are purchased in dollars, meaning that a weaker shilling makes fuel more expensive to import, while a stronger shilling helps reduce import costs.

Taxes and levies imposed by the government further influence pump prices. Fuel sold in Kenya attracts various charges, including Value Added Tax (VAT), the Road Maintenance Levy, Petroleum Development Levy and other statutory fees, which form a significant portion of the final retail price.

Industry experts note that transportation, storage and handling costs also contribute to fuel pricing. Once fuel arrives at the Port of Mombasa, it must be transported through pipelines and road networks to various parts of the country, costs that are ultimately reflected in the price paid by consumers.

EPRA reviews these factors every month before announcing new prices for the next pricing cycle. The regulator says the monthly adjustments are designed to ensure that local fuel prices reflect prevailing market conditions while maintaining stability in supply.

As households and businesses continue to grapple with the cost of living, fuel prices remain a key economic indicator, influencing the cost of transport, food, electricity generation and the overall price of goods and services across the country.