Government Cuts Fuel Prices After Public, Opposition Outcry
The regulator said kerosene prices remain unchanged despite the tax adjustment, although the subsidy has been reduced from KSh108.10 per litre to KSh96.56 per litre.
By Staff Writer
The government has reduced fuel prices following mounting public outcry over the high cost of living, with motorists set to pay less for petrol and diesel in the latest pricing review.
The move comes a day after authorities announced a sharp increase in pump prices driven by rising global oil costs, despite an earlier reduction in Value Added Tax (VAT).
The Energy and Petroleum Regulatory Authority (EPRA) had indicated prices would rise by KSh28.69 for petrol, KSh40.30 for diesel and KSh39.08 for kerosene, triggering immediate concern across sectors.
Following the backlash, the Treasury has this evening revised Value Added Tax further from 13 percent to 8 percent, prompting EPRA to recalculate maximum retail pump prices for the review period.
In Nairobi, Super Petrol now retails at KSh197.60 per litre, Diesel at KSh196.63, and Kerosene at KSh152.78, reflecting reductions of KSh9.37 and KSh10.21 for petrol and diesel.
The regulator said kerosene prices remain unchanged despite the tax adjustment, although the subsidy has been reduced from KSh108.10 per litre to KSh96.56 per litre.
“These price adjustments reflect the impact of the revised VAT rate and are intended to provide relief to consumers,” said EPRA Director General Joseph Oketch.
Data from the pricing schedule shows taxes and levies still form a large portion of pump prices, accounting for KSh72.38 per litre for petrol and KSh62.91 for diesel.
The cost breakdown also highlights landing costs of KSh107.23 for petrol and KSh133.89 for diesel, alongside distribution, storage and marketing margins shaping final consumer prices.
Pump prices vary across regions due to transport and logistical factors, with coastal areas such as Mombasa recording petrol prices at KSh194.32 per litre.
In towns such as Nakuru and Eldoret, petrol prices average between KSh196 and KSh197 per litre, while remote regions including Lodwar and Mandera post higher costs.
Analysts say the VAT reduction signals a policy shift aimed at easing pressure on households after sustained increases in fuel costs that have raised transport and food prices.
One analyst said the relief may be temporary as global oil market volatility and exchange rate pressures continue to pose risks to future fuel pricing cycles.
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