The latest fuel price increases announced by the Energy and Petroleum Regulatory Authority (EPRA) are likely to affect millions of Kenyans, from motorists and public transport users to households and businesses already grappling with the high cost of living.
Under the new adjustments, super petrol has increased by KSh 12.93 per litre, diesel by KSh 9.90 and kerosene by KSh 28.49 per litre.
But what do these increases mean for ordinary Kenyans?
- Motorists will spend more on fuel
Drivers who rely on petrol-powered vehicles will have to dig deeper into their pockets to keep their cars on the road.
For example, a motorist buying 40 litres of super petrol will pay an additional KSh 517.20 compared with the previous price, assuming the full increase applies at the pump.
This could force some drivers to reduce unnecessary trips, adjust their budgets or spend more on transport.
- Public transport fares could rise
Diesel is widely used by matatus, buses and other commercial vehicles. The KSh 9.90 per litre increase could raise operating costs for public transport operators.
Operators may seek to pass some of these additional costs to passengers through higher fares, particularly on long-distance routes.
However, a fuel price increase does not automatically mean fares will rise by a specific amount. Any adjustment will depend on operating costs, route demand and decisions made by transport operators.
- Food prices could increase
The cost of transporting food from farms to markets and shops could rise as diesel becomes more expensive.
Farmers and traders who depend on fuel-powered machinery, trucks and distribution vehicles may also face higher operating expenses.
These costs could eventually be passed on to consumers, potentially making essential commodities such as vegetables, maize flour, rice and cooking oil more expensive.
The actual impact will depend on transport costs, supply conditions and how much of the increase businesses pass on to buyers.
- Kerosene users face the biggest increase
Kerosene has recorded the steepest increase at KSh 28.49 per litre.
For a household buying five litres, the additional cost would amount to KSh 142.45, assuming the increase applies uniformly to the quantity purchased.
The adjustment could particularly affect low-income households that depend on kerosene for cooking and lighting, leaving them with less money for other basic needs.
- Businesses could face higher operating costs
Small businesses, manufacturers, farmers and delivery companies could feel the impact through increased transport, production and distribution expenses.
Businesses that rely heavily on fuel may have to absorb some of the additional costs or increase the prices of their products and services.
For small enterprises operating on tight profit margins, the changes could make it harder to keep prices affordable while remaining profitable.
- Inflation could come under pressure
Fuel is a major input in Kenya’s transport and production systems. When fuel prices rise, the effects can spread across different sectors of the economy.
If transport, electricity generation costs where petroleum fuels are used, and the distribution of goods become more expensive, the overall cost of living could rise.
However, the size and timing of any inflationary impact will depend on other economic factors, including food supply, exchange rates and the prices of other essential inputs.
- What can Kenyans do to manage the impact?
As the new prices take effect, households and businesses can consider several measures to reduce the pressure on their budgets:
- Plan trips carefully: Combine errands and avoid unnecessary journeys.
- Use public transport or carpool: Where practical, sharing transport can reduce individual fuel expenses.
- Review household budgets: Prioritise essential spending and account for possible changes in transport and food costs.
- Compare prices: Check prevailing prices before purchasing fuel or essential commodities.
- Improve business efficiency: Businesses can review delivery routes, vehicle use and other operating expenses.
The bottom line
EPRA’s latest fuel price adjustments could extend beyond petrol stations, affecting transport fares, food prices, household spending and business operations.
The KSh 28.49 increase in kerosene is particularly significant for households that depend on the fuel, while motorists and businesses will have to account for higher petrol and diesel costs.
The extent of the impact will depend on the revised pump prices, how businesses respond and whether the additional costs are passed on to consumers.
For many Kenyans, the key concern will be whether the increases trigger another round of price adjustments at a time when household budgets remain under pressure.
