Kenya Keeps Fuel Prices Steady Despite Global Oil Surge

2026-03-14 region

Nairobi, 14 March 2026
Kenyan motorists receive unexpected relief as fuel prices remain unchanged through April, even as global oil costs jumped dramatically. Import costs rose sharply with diesel up 8.46% and oil approaching $100 per barrel amid Middle East tensions.

Price Stability Amid Import Cost Surge

The Energy and Petroleum Regulatory Authority (EPRA) announced on Saturday, 14 March 2026, that fuel prices will remain unchanged for the March-April review period, effective from 15 March to 14 April 2026 [1][6][8]. In Nairobi, Super Petrol will retail at Ksh178.28 per litre, Diesel at Ksh166.54, and Kerosene at Ksh152.78 [1][2][6]. This decision comes despite significant increases in import costs, with the average landed cost of imported diesel rising by 8.46 per cent from US$586.80 per cubic metre in January 2026 to US$636.45 per cubic metre in February 2026 [7][8]. Kerosene costs increased by 6.79 per cent over the same period, from US$598.82 to US$639.48 per cubic metre, whilst Super Petrol recorded a more modest 1.00 per cent increase from US$576.34 to US$582.11 per cubic metre [7][8].

Global Oil Markets Under Pressure

The stable pricing announcement occurred against a backdrop of volatile international oil markets. The Central Bank of Kenya revealed that Murban crude oil prices surged from USD 76.25 per barrel on Thursday, 5 March 2026, to USD 92.13 per barrel by Thursday, 12 March 2026, representing an increase of 15.88 or USD 15.88 per barrel within one week [3]. Meanwhile, global oil prices rose more than 2 per cent on Friday, 13 March 2026, approaching $98 per barrel due to the blockade of the Strait of Hormuz [7]. Brent crude increased by over 9 per cent in Asian trading, exceeding $100 per barrel, whilst West Texas Intermediate crude futures rose toward $95 per barrel [7]. The Strait of Hormuz, which carries approximately 21 per cent of the world’s oil, has become a critical chokepoint amid escalating tensions involving Iran [2][7].

Government Assurances on Supply Security

Energy Cabinet Secretary Opiyo Wandayi provided reassurance to the public on Friday, 12 March 2026, confirming that Kenya has adequate fuel reserves and that there is no imminent shortage [2][3]. The Cabinet Secretary had earlier, on Tuesday, 3 March 2026, confirmed that Kenya has secured scheduled imports through April 2026 [3]. EPRA Director General Daniel Kiptoo Bargoria explained that the current pricing calculations were based on vessels received and discharged between 10 February and 9 March 2026, noting that ‘most of these vessels are February-priced cargoes and the effect of the situation in the Middle East has not had an effect on the prices yet’ [8]. Former Cabinet Secretary Moses Kuria dismissed fears of an imminent fuel price spike on 12 March 2026, explaining that Kenya’s pricing system uses the M-Minus One formula, where prices are determined by the previous month’s shipping costs [6].

Impact on Turkana’s Refugee and Host Communities

The maintained fuel prices provide crucial stability for both refugee and host communities in Turkana County, where transport costs directly affect access to essential services and markets. The unchanged diesel price of Ksh166.54 per litre particularly benefits transport operators serving routes to and from Kakuma and Kalobeyei refugee camps, helping maintain affordable fares for refugees accessing healthcare, education, and livelihood opportunities [1][2]. Host communities in Turkana also benefit from stable transport costs for agricultural produce and goods movement to regional markets. The pricing structure includes a 16 per cent Value Added Tax in accordance with the Finance Act 2023 and the Tax Laws (Amendment) Act 2024 [1][6][8]. Despite the temporary reprieve, the International Energy Agency announced that its 32 member countries would release 400 million barrels of oil from emergency reserves, marking the largest coordinated drawdown since the agency’s creation after the 1973 oil embargo [7].

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fuel prices transport costs