Global Oil Prices Increase as Kenya Reduces Diesel Prices
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Global oil prices have gone up due to uncertainty from the conflict in the Middle East. At the same time, Kenya has lowered the maximum retail price of diesel by Ksh 5 per litre.
The reduction will take effect on Saturday, August 15, 2026, and remain in place until September 14, 2026, according to the Energy and Petroleum Regulatory Authority (EPRA).
EPRA said the price of Super Petrol and Kerosene will remain unchanged during the period, supported by Ksh938 million in additional government stabilisation measures.
Global Oil Prices Increase
The latest review comes as Murban crude oil prices rose to US$79.29 (Ksh10,249) per barrel on August 13, up from US$72.54 (Ksh9,376) per barrel on August 6.
According to the Central Bank of Kenya (CBK) weekly bulletin released on Friday, the increase was driven by heightened uncertainty arising from the conflict in the Middle East.
Also Read: Global Oil Prices Continue to Fall, but Kenyans May Have to Wait Longer for Cheaper Fuel
Despite the rise in global oil prices, Kenya recorded lower landed costs for diesel and kerosene during the period under review.
EPRA said the average landed cost of imported diesel declined by 13.08%, from US$984.37 (about Ksh127,196) per cubic metre in June 2026 to US$855.59 (about Ksh110,579) per cubic metre in July.
The landed cost of kerosene also fell by 11.01%, from US$1,028.17 (about Ksh132,835) per cubic metre to US$915.01 (about Ksh118,252) per cubic metre.
However, the landed cost of Super Petrol increased by 6.99%, rising from US$836.92 (about Ksh108,168) per cubic metre in June to US$948.92 (about Ksh122,625) per cubic metre in July.
Inflation Outlook
The rise in global energy prices comes as the CBK expects Kenya’s overall inflation to remain within the target range in the near term, assuming a gradual de-escalation of the conflict in the Middle East.
Also Read: Oil Prices Drop as Gold Prices Rise in First Week of August
The CBK said this outlook will be supported by appropriate monetary policy measures, government interventions, including fuel subsidies and the temporary reduction of VAT on fuel, as well as a stable exchange rate.
The Central Bank Rate was maintained at 8.75% during the Monetary Policy Committee meeting held on August 11, 2026.
The CBK noted that global energy prices have remained elevated due to disruptions to oil supply and continued uncertainty linked to the Middle East conflict.
Kenya’s stable exchange rate has also helped cushion the economy from external price pressures. The shilling traded at Ksh129.40 against the US dollar on August 13, compared to Ksh129.41 on August 6.
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CBK Governor Kamau Thugge. PHOTO/CBK