New Fuel Prices You Should Know: No Big Change

The Energy and Petroleum Regulatory Authority (EPRA) has issued its latest monthly review of fuel prices, bringing slight relief to Kenyan motorists and households with a reduction in the cost of super petrol and kerosene.

The new prices, announced on Thursday, August 14, will take effect from midnight, August 15, 2025, and remain in force until September 14, 2025. In its statement, EPRA confirmed that the maximum retail prices for super petrol and kerosene will each drop by KSh1 per litre, while the cost of diesel will remain unchanged.

The adjustments have been calculated by Section 101(y) of the Petroleum Act 2019 and Legal Notice No. 192 of 2022, which guide the monthly fuel price review process.

“By the Petroleum Act and prevailing regulations, we have determined the maximum allowable pump prices for petroleum products for the next pricing cycle,” the authority stated. “During this period, the price of super petrol and kerosene has reduced by Ksh1 per litre, while diesel prices will remain the same.”

In Nairobi, motorists will now pay Ksh185.31 per litre for super petrol, Ksh171.58 per litre for diesel, and Ksh155.58 per litre for kerosene. This represents a slight drop from last month’s rates, when super petrol retailed at Ksh186.31 and kerosene at Ksh156.58 per litre. Diesel, which remains unchanged, has been retailing at Ksh171.58 per litre.

The price reduction comes after July’s review saw an upward adjustment, tightening the budget for many Kenyans who rely on fuel for transportation, cooking, and small-scale business operations.

EPRA noted that all retail prices remain inclusive of 16% Value Added Tax (VAT), in line with the Finance Act 2023 and the Tax Laws (Amendment) Act 2024, as well as the annual inflation adjustment to excise duty outlined under Legal Notice No. 194 of 2020.

According to EPRA, the decline in super petrol prices is largely due to a drop in the international landed cost of the product. The landed cost of imported super petrol fell by 0.73%, from USD 628.30 (Ksh81,201) per cubic metre in June 2025 to USD 623.71 (Ksh80,608) per cubic metre in July 2025.

On the other hand, diesel and kerosene recorded an increase in landed costs over the same period, rising by 3.08% and 3.20%, respectively. Despite these increases, EPRA has maintained the diesel price and slightly reduced the kerosene price, moves likely aimed at cushioning consumers from sharp price fluctuations.

The latest Central Bank of Kenya (CBK) weekly bulletin had already hinted at an impending adjustment, noting a decline in international crude oil prices. Prices for Murban crude oil dropped to USD 68.25 (Ksh8,871) per barrel on August 7, down from USD 73.52 (Ksh9,550) per barrel a week earlier, on July 31.

Analysts attribute the fall in global prices to shifts in market sentiment and an improving supply outlook, with projections pointing to an increase in global oil production. As Kenya imports all its petroleum products in refined form, local pump prices are directly influenced by these international market trends.

While the KSh1 per litre drop in petrol and kerosene may seem modest, it is expected to bring some relief to households and businesses grappling with high living costs. Public service vehicle operators, small-scale traders using kerosene-powered equipment, and rural households that rely on kerosene for lighting and cooking will particularly benefit from the adjustment.

However, with diesel prices unchanged, affecting freight transport, agricultural machinery, and industrial operations, experts warn that broader inflationary pressures may persist. Fuel costs in Kenya have a direct impact on the cost of transporting goods, and by extension, the price of food and other essentials.

The next review by EPRA Is scheduled for mid-September, and market watchers will be closely monitoring global oil movements, exchange rates, and landed cost data to anticipate possible changes.

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