Diesel prices will decline by KSh5 per litre from Saturday, August 15, after the Energy and Petroleum Regulatory Authority (EPRA) released new maximum retail petroleum prices for the period ending September 14, 2026.
Under the new pricing cycle, the price of Super Petrol and Kerosene will remain unchanged, with the government providing an additional KSh938 million in fuel price stabilisation support.
The new prices take effect from August 15 to September 14, 2026, in line with the Petroleum Act, 2019 and the Petroleum Pricing Regulations.
EPRA said the reduction in diesel prices was largely driven by a decline in the average landed cost of imported petroleum products.
The average landed cost of diesel fell by 13.08 per cent, from US$984.37 per cubic metre in June 2026 to US$855.59 per cubic metre in July.
Kerosene also recorded an 11.01 per cent decline, falling from US$1,028.17 to US$915.01 per cubic metre during the period.
However, the average landed cost of Super Petrol increased by 6.99 per cent, rising from US$886.92 per cubic metre in June to US$948.92 per cubic metre in July.
Despite the increase in the cost of Super Petrol, EPRA said the pump price would remain unchanged following the additional government stabilisation support.
The regulator noted that Kenya currently imports all its petroleum requirements in refined form, with products traded in international markets using established pricing benchmarks.
The prices are also affected by movements in the US dollar against the Kenyan shilling. EPRA reported that the average USD/KSh exchange rate used in the July 2026 pricing calculations stood at KSh129.74, compared with KSh129.72 in June.
The new prices include Value Added Tax (VAT), in accordance with the applicable tax laws and regulations, including the VAT Act, Finance Act, 2023, Tax Laws (Amendment) Act, 2024, and revised excise duty rates adjusted for inflation.
EPRA said the petroleum pricing mechanism is intended to cap retail prices of petroleum products already imported into the country, allowing importers and other market players to recover prudently incurred costs while protecting consumers from unreasonable price increases.