NAIROBI, Kenya, July 22-Energy and Petroleum Cabinet Secretary Opiyo Wandayi has attributed the Sh9 increase in fuel pump prices to a combination of rising international import costs, local distribution expenses, and currency fluctuation.
Wandayi, appearing before National Assembly’s departmental committee on Energy, told lawmakers that the July-August 2025 pump price jump was driven by a Sh5.3 rise in the landed import price per litre, a Sh2.5 increment in logistics and distribution costs, and a 10-cent increase resulting from exchange rate variance.
“The international prices of refined products increased by 6.72%, 9.33% and 8.15% for Super Petrol, Diesel and Kerosene respectively between the months of May and June 2025,” the CS told the committee, noting that this alone led to a Sh5.17 per litre hike for petrol.
In addition to rising global prices, Wandayi pointed to the implementation of the second phase of the Cost-of-Service Study in Supply of Petroleum Products (COSSOP 2023), which introduced gradual adjustments to cover inflation, financing, and storage expenses.
This phase contributed an average of Sh2.47 to the final pump price across all fuel types.
The second phase, implemented on 15th July 2025, added Sh 2.47 per litre (excluding VAT) to the retail pump price, attributed to increases in secondary storage costs, transport within a 40km radius, wholesale and retail margins, as well as stock financing costs.
Wandayi dismissed public concern that the Government-to-Government (G-to-G) import deal should shield consumers from such hikes, emphasizing that “fixed freight and premium rates do not insulate final pump prices from global market movements.”
The average retail prices for the current cycle (15th July–14th August 2025) now stand at Sh186.31 for Super Petrol, Sh171.58 for Diesel, and Sh156.14 for Kerosene in Nairobi.
Lawmakers are now demanding better utilization of the Sh25 billion Petroleum Development Levy allocated for price stabilization in the current fiscal year.
The committee is also pressing for further clarity on liabilities accrued under the G-to-G arrangement, for which the government has already settled over USD 10.9 billion (Sh1.41 trillion) in letters of credit.
