"Costs increased by KSh 8k": Gov't stabilises petrol and kerosene in new review

This story has significance for readers across Kenya and beyond.

- The Energy and Petroleum Regulatory Authority announced new fuel prices effective Saturday, August 15, 2026

- Super petrol's landed cost rose nearly 7% between June and July 2026, putting upward pressure on pump prices

- The government deployed KSh 938 million in stabilisation support to shield consumers from the full impact of the cost increase

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.

Kenya's government has injected KSh 938 million into fuel stabilisation measures to shield consumers from rising import costs, keeping the retail prices of super petrol and kerosene unchanged for the August–September pricing cycle.

The Energy and Petroleum Regulatory Authority (EPRA) announced the new pump prices on Friday, August 14, with the adjustments taking effect on Saturday, August 15, 2026.

What drove the fuel stabilisation decision?

EPRA data shows that the average landed cost of imported super petrol climbed 6.99% between June and July 2026, rising from US$886.92 (KSh 114,499.69) to US$948.92 (KSh122,503.77) per cubic metre.

This translates to a rise of KSh 8,004.08.

"The average landed cost of imported Super Petrol increased by 6.99% from US$836.92 per cubic metre in June 2026 to US$948.92 per cubic metre in July 2026," EPRA stated.

Without government intervention, that increase would have translated into higher prices at the pump for millions of Kenyan motorists and households.

Diesel and kerosene moved in the opposite direction over the same period.

Diesel fell 13.08%, dropping from US$984.37 to US$855.59 per cubic metre, while Kerosene declined 11.01%, from US$1,028.17 to US$915.01 per cubic metre.

Despite the relief on diesel costs, EPRA and the government opted to apply the KSh 938 million stabilisation fund specifically to hold super petrol and kerosene prices steady, protecting ordinary consumers who rely on kerosene for cooking and lighting, as well as motorists affected by petrol costs.

Diesel prices were adjusted to reflect the more favourable import cost movement recorded during the review period.

The government's use of stabilisation support continues a pattern established in previous pricing cycles, where subsidy-style interventions have been deployed to prevent sharp upward swings in pump prices from feeding directly into the cost of living.

What are the new fuel prices in Kenya?

In Nairobi, super petrol will retail at KSh 214.03 per litre, while diesel will cost KSh 217.86 per litre.

On the other hand, kerosene will retail at KSh 191.38 per litre.

The prices include Value Added Tax (VAT) in line with the VAT Act, 2013.

Source: TUKO.co.ke

Reporting originally appeared via TUKO. Read the full source for additional context.