Govt Addresses Potential Fuel Price Hikes as Israel-Iran Tensions Disrupt Oil Markets

The government has addressed a possible fuel price hike following escalating tensions in the Middle East.

In a statement dated March 3, 2026, the Ministry of Energy and Petroleum CS Opiyo Wandayi said the government had reviewed the country’s fuel supply and stock levels amid rising concerns linked to the Israel-Iran conflict.

“In light of the escalating tensions in the Middle East region where our petroleum products supply is sourced, the Ministry of Energy and Petroleum has reviewed the supply and stock situation and wishes to advise as follows,” read part of the statement.

Energy CS Moves to Calm Fears Over Possible Fuel Price Hike

The Ministry assured the public that the country currently has sufficient fuel stocks to meet both domestic and regional demand. It added that scheduled imports are secured up to the end of April 2026, guaranteeing continued supply.

“We are closely monitoring the fluid situation as it evolves while engaging with our government-to-government suppliers for contingency planning,” the statement added.

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The Ministry further reassured the public and stakeholders that it remains vigilant and will take necessary measures to ensure an uninterrupted fuel supply.

“We wish to assure the public and all stakeholders that the Ministry remains alert and shall continue taking necessary actions to ensure there is an uninterrupted supply. The Ministry undertakes to keep the country sufficiently updated,” said the CS.

CS Mbadi Warns of Possible Higher Fuel Prices

The Energy CS’s statement comes hours after the Treasury CS also spoke about a potential increase in fuel prices.

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Appearing before a parliamentary committee on March 2, 2026, Treasury Cabinet Secretary John Mbadi warned that escalating tensions between Iran and Israel pose a “severe threat” to global oil supply chains, which could lead to higher fuel prices in Kenya.

Mbadi specifically noted that any closure or disruption of the Strait of Hormuz, a critical shipping lane that handles roughly 20% of global oil flows, would trigger a spike in international crude prices.

He stressed that, as a net importer of petroleum, Kenya is highly vulnerable to these “geopolitical tremors,” and such increases would inevitably cascade down to local pump prices in Nairobi.

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