A bad economic situation across the country is set to become worse over the next 30 days following the decision by the Energy and Petroleum Regulatory Authority (EPRA) to increase fuel prices.
“We have calculated the maximum wholesale and retail prices of petroleum products which will be in force from 15th July 2025 to 14th August 2025… The prices are inclusive of the 16 percent Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2024 and the revised rates for excise duty adjusted for inflation,” the EPRA stated.
In the EPRA increase, a litre of petrol went up by Sh8.99 and will now sell at Sh186.31 in Nairobi and its environs. A litre of diesel went up by Sh8.67 and will now retail at Sh171.58 in Nairobi while a litre of kerosene went up by the largest margin of Sh9.65 to retail at Sh156.58 over the next 30 days.
These increases were the highest on record since September 2023 when a litre of diesel shot up by Sh21.32 to sell at Sh200.99 and a litre of petrol went up by Sh16.96 to Sh211.64.
Kerosene is mainly used by low-income households in the country for cooking and lighting and the upward price movement is expected to have a direct impact on affordability. At the same time, with diesel a major economic fuel for the transportation sector, factories and industries, the increase nearly Sh9 per litre has exposed consumers to higher costs of goods and services, including matatu fares.
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The new fuel prices are expected to push the cost of living upwards in the months of July and August from the lower inflation levels that were recorded in the month of June.
According to data from the Central Bank of Kenya (CBK), Kenya recorded an annual average inflation of 3.56 in the month of June, down from 3.63 which was recorded in the month of May. In the same period, the 12-month inflation rate was at 3.82 in the month of June and 3.75 in the month of May. In April, it stood at 4.11.
