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The government will draw about Sh5 billion from the Petroleum Development Levy (PDL) Fund to cushion Kenyans against rising fuel prices in the latest monthly review covering the period May 15, 2026, to June 14, 2026.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi said the intervention is aimed at stabilising diesel and kerosene prices, even as Super Petrol and diesel record significant increases driven by global market pressures such as rising crude oil prices, higher freight charges, and geopolitical tensions in the Middle East.
“To mitigate the impact of rising global petroleum prices on consumers and the wider economy, the government has utilised the Petroleum Development Levy (PDL) stabilisation mechanism to cushion the prices of Diesel and Kerosene during this review period,” Wandayi said.
He added that roughly Sh5 billion has been deployed to soften the impact of the increases while maintaining stability in the fuel supply chain.
Despite the subsidy, consumers will still pay higher pump prices compared to the previous cycle. Super Petrol has increased by Sh16.65 per litre, while diesel has risen by Sh46.29 per litre. Kerosene prices remain unchanged.
The Ministry attributed the upward adjustment to continued volatility in global oil markets, noting that Kenya remains heavily exposed as a net importer of refined petroleum products.
It reported that the average landed cost of Super Petrol rose from USD 823.27 per cubic metre in March 2026 to USD 906.23 in April 2026, representing a 10 percent increase.
Diesel recorded an even sharper rise of 20.32 percent, while kerosene increased marginally by 1.59 percent over the same period.
The Ministry further cited global supply disruptions, increased insurance costs linked to instability around the Strait of Hormuz, and higher freight charges as key drivers of the price surge.
The government also pointed to ongoing mitigation measures, including a reduction in VAT on petroleum products from 16 percent to 8 percent and the Government-to-Government (G-to-G) oil importation framework, which it says has helped reduce exposure to high international freight premiums.
It noted that global shipping and insurance costs have more than doubled, adding pressure to countries reliant on open-market fuel imports.
Despite the increases, the Ministry assured the public that Kenya has sufficient fuel stocks and that supply remains stable.
It also warned against exploitative pricing practices by traders during the period of global uncertainty.
The review follows the latest Energy and Petroleum Regulatory Authority (EPRA) fuel price adjustment, with the government pledging continued engagement with stakeholders in energy, transport, and manufacturing sectors to manage the impact on consumers and the economy.
