Cost of Living Set to Rise as Fuel Prices Record Sharp Increase

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NAIROBI, Kenya-Motorists across the country are set to dig deeper into their pockets after a sharp increase in fuel prices, following the latest review by the Energy and Petroleum Regulatory Authority (EPRA).

In the new pricing cycle announced on Tuesday, the cost of super petrol has risen by Sh28.69 per litre, while diesel has recorded an even steeper increase of Sh40.30 per litre, one of the highest jumps in recent years.

The latest adjustment now pushes petrol prices to about Sh206.97 per litre in Nairobi, with diesel climbing to approximately Sh206.84, effectively pushing both fuels above the Sh200 mark.

Diesel Shock Hits Economy

The sharp spike in diesel prices is expected to have the biggest economic impact, given its central role in powering public transport, logistics, agriculture and manufacturing. 

Analysts warn that the increase could trigger an immediate rise in matatu fares, food prices and overall cost of living.

What’s Driving the Increase

The surge has been attributed to a combination of global and local factors. 

Rising international crude oil prices, largely linked to geopolitical tensions in the Middle East, have pushed up import costs. 

At the same time, the weakening Kenyan shilling and higher landing costs for petroleum products have compounded the pressure on pump prices.

Reduced government intervention through subsidies has also exposed consumers more directly to market forces, reversing months of relative stability in fuel prices.

Tough Times Ahead

The increase is expected to ripple across the economy, with businesses likely to pass on higher operational costs to consumers. Economists are already warning of rising inflation and reduced household purchasing power in the coming months.

With global oil markets remaining volatile, attention now turns to whether the government will step in to cushion Kenyans, or if this marks the beginning of sustained high fuel prices.

Joseph Muraya
Joseph Muraya
With over a decade in journalism, Joseph Muraya, founder and CEO of Y News, is a respected Communications Consultant and Journalist, formerly with Capital News Kenya. He aims to revolutionize storytelling in Kenya and Africa.

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