Understanding how fuel prices are structured does not make filling your tank cheaper. But it tells you why the price is what it is, which components you can track in advance, and how to calculate what any given journey is actually costing you. The Fuel Cost Estimator at the bottom of this article makes the last part straightforward.
Who Sets Fuel Prices in Kenya
Fuel prices in Kenya are not set by the market or by petrol stations — they are regulated. The Energy and Petroleum Regulatory Authority (EPRA) sets the maximum pump prices for Super Petrol, Diesel, and Kerosene (Illuminating Kerosene, or IK) every month.
The pricing cycle follows a fixed calendar:
- EPRA reviews international crude oil costs, exchange rates, and other inputs in the first two weeks of each month
- New maximum prices are announced around the 14th or 15th of the month
- The new prices take effect on the 15th
- Prices remain in force until the next review on the following 15th
Petrol stations may charge less than the EPRA maximum — and a few do in competitive locations — but they cannot legally charge more. In practice, almost every station charges exactly the maximum price because the margins are already thin.
The prices EPRA announces are for Nairobi. Other towns have their own scheduled maximum prices, which are higher than Nairobi due to transport costs. More on that below.
Approximate Pump Prices in Nairobi (2026)
As of mid-2026, the approximate Nairobi pump prices are:
| Fuel Type | Approximate Price (KES/litre) |
|---|---|
| Super Petrol | KES 185–195 |
| Diesel | KES 175–185 |
| Kerosene (IK) | KES 145–160 |
These are approximate figures. The exact price changes each month on the 15th. For the current official maximum, check the EPRA website at epra.go.ke, which publishes each month's pricing schedule.
What the Pump Price Is Actually Made Of
This is the section most people have never seen. The price you pay per litre is not a single number — it is the sum of at least ten distinct cost components, each set or approved separately. Here is the full breakdown, in the order they layer onto the price:
- Ex-refinery price — the base cost of the refined fuel. This is linked to international crude oil prices (specifically Brent Crude, the global benchmark) priced in US dollars, then converted to Kenya shillings. This is the single biggest component of the pump price and the most volatile — it moves with global oil markets every month.
- Import and distribution margin — the cost and margin for oil marketing companies (OMCs) to import, ship, store, and distribute fuel within Kenya. This covers port handling at Mombasa, storage at the Kipevu Oil Storage Facility, and pipeline transport via the Kenya Pipeline Company.
- EPRA levy — a small operational levy that funds the Energy and Petroleum Regulatory Authority itself.
- Road Maintenance Levy (RML) — KES 18 per litre for petrol and diesel (kerosene is exempt). This goes to the Kenya Roads Board and is ring-fenced for road maintenance and repair. It is a fixed shilling amount, not a percentage, so it does not move with the oil price.
- Railway Development Levy (RDL) — 1.5% of the CIF (cost, insurance, and freight) value of imported petroleum. This levy funds railway infrastructure development.
- Petroleum Development Levy (PDL) — a stabilisation fund levy. This acts as a buffer: when oil prices spike internationally, the government can draw down the PDL fund to cushion consumers from the full increase. When prices fall, the fund is refilled. The PDL can make a price increase feel smaller — or disappear entirely — in a high-price month. More on how this works below.
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Excise Duty — a fixed government tax per litre:
- Super Petrol: KES 21.95 per litre
- Diesel: KES 10.31 per litre
- Kerosene (IK): KES 7.29 per litre
- VAT — 8% on petroleum products. Note that this is the reduced rate (Kenya's standard VAT rate is 16%; petroleum was subject to a reduced rate following government policy). VAT is applied to the sub-total of all components above, meaning it compounds on top of levies, excise duty, and margins — not just the raw fuel cost.
- Dealer margin — the petrol station owner's margin per litre. This is the smallest component and is also regulated by EPRA. It covers station operating costs and the owner's profit.
- Pump price — the total of all components above is the maximum price EPRA publishes, and the price you pay at the forecourt.
The reason this matters: when you hear that "fuel prices have increased by KES 5 per litre," it could be because the ex-refinery price moved (oil market), or because the shilling weakened (exchange rate), or because EPRA adjusted a levy, or because the PDL fund was refilled after a period of drawing it down. These are different causes with different implications for what happens next month.
Use our free fuel cost estimator to see exactly what any journey will cost you based on current Nairobi pump prices and your car's consumption.
Fuel Estimator →Why Prices Change Month to Month
Four factors drive the monthly price change:
1. International crude oil price
This is the dominant driver. Brent Crude is priced in US dollars per barrel on global commodity markets and moves every trading day based on supply, demand, geopolitics, and OPEC production decisions. When the oil price rises, the ex-refinery component of Kenya's pump price rises the following month. When it falls, the pump price should follow — though other components can partially offset the saving.
2. Kenya shilling exchange rate against the US dollar
Even if the international oil price stays flat in dollar terms, a weakening shilling makes fuel more expensive in Kenya. If the KES/USD rate moves from 130 to 135, every dollar of oil cost now requires more shillings. This is why fuel price increases in Kenya sometimes happen during periods when the global oil price is stable or even falling — the exchange rate is doing the damage.
The reverse is also true: a strengthening shilling can bring fuel prices down even when global oil prices are rising. In 2024, partial shilling recovery against the dollar provided some relief at the pump.
3. Petroleum Development Levy adjustments
The PDL is a buffer mechanism. EPRA can draw on the fund to absorb part of a price increase in a given month, so the consumer-facing price rises by less than the full cost increase would imply. Conversely, when the fund is being refilled after a drawdown, prices may stay higher than the underlying cost would suggest.
When the PDL fund runs low — which happens during sustained periods of high oil prices — the buffer runs out and the full market price passes through to consumers. This is when you see large single-month price jumps.
4. Government levy and tax policy
Excise duty rates, the Road Maintenance Levy, and VAT on petroleum are set by the government and can be changed through the Finance Act. These changes are less frequent but, when they happen, they are permanent additions to the pump price rather than market fluctuations.
Nairobi vs Other Towns: Why Prices Differ
EPRA sets Nairobi as the benchmark price. For every other town in Kenya, a transport differential is added to reflect the cost of moving fuel from its source to that location.
A few practical patterns:
- Mombasa is typically cheaper than Nairobi for petroleum products — the port and the main oil storage facilities are on the coast, so transport costs are lower. Nairobi fuel has already absorbed the cost of pipeline transport from Mombasa to Nairobi.
- Nakuru and Eldoret are served by the Kenya Pipeline Company's northern route and are priced slightly above Nairobi, reflecting that leg of the journey.
- Kisumu receives fuel via the pipeline to Eldoret and then by road to Kisumu, adding to the differential.
- Garissa, Isiolo, Marsabit and other remote towns have the highest transport differentials and consequently the highest fuel prices in the country — the fuel is trucked over long distances.
If you are planning a long road trip, the regional price differences are worth knowing. Filling up in Mombasa before heading inland, or topping up in Nairobi before driving to Garissa, can save a meaningful amount depending on your tank size.
The Real Cost of Price Increases: A Practical Example
Abstract percentage increases are easy to ignore. A concrete journey cost makes the change real.
Consider a 100km round trip — Nairobi to Thika and back — in a car that does 10km per litre. That trip uses 10 litres of petrol regardless of price.
| Year | Petrol Price (approx.) | Cost of the 100km Trip |
|---|---|---|
| 2020 | KES 120/litre | KES 1,200 |
| 2022 | KES 150/litre | KES 1,500 |
| 2024 | KES 175/litre | KES 1,750 |
| 2026 (approx.) | KES 190/litre | KES 1,900 |
The same 100km journey that cost KES 1,200 in 2020 now costs approximately KES 1,900 — an increase of KES 700 for identical kilometres driven. Multiply that across all the trips you make in a month and the cumulative household cost becomes significant.
For drivers who commute, do deliveries, or run a boda boda, the fuel cost is not background noise — it is one of the largest variable expenses they face. Tracking it precisely makes budgeting possible. That is exactly what the Fuel Cost Estimator is built for.
Enter your distance, fuel consumption, and current petrol price to get an instant cost estimate for any trip — one-way or return.
Fuel Estimator →How to Follow Fuel Prices Each Month
A few practical habits:
- Check EPRA's monthly announcement — the official pricing schedule is published at epra.go.ke, usually around the 14th–15th. It lists the maximum prices for every town in the EPRA schedule, not just Nairobi.
- Prices change on the 15th — if a price decrease is expected and you can wait, filling up after the 15th saves money. If an increase is coming, filling up on the 14th is worth it for a full tank.
- Check the board at the station entrance — petrol stations are required to display their current prices. The price on the board should not exceed the EPRA maximum for that town. If it does, that is a regulatory violation you can report to EPRA.
- Track international oil prices — Brent Crude prices are published daily and are freely available online. A sustained move of $5–10 per barrel in one direction is usually a reliable leading indicator of where Kenya pump prices will move on the next 15th.
The Bottom Line
The price you pay for petrol in Kenya is set by EPRA once a month, takes effect on the 15th, and is built from at least ten separate components — crude oil cost, import and distribution margin, four different levies, excise duty, VAT, and the dealer margin. The biggest movers month to month are the international Brent Crude price and the Kenya shilling exchange rate against the dollar. The Petroleum Development Levy acts as a buffer that can smooth out sharp spikes, but when the fund runs low, the full increase passes through to consumers.
For Nairobi, Super Petrol is approximately KES 185–195 per litre in 2026. Other towns are priced higher than Nairobi based on transport distance, with the exception of Mombasa which is typically lower. To get the exact current price, check the EPRA pricing schedule for your town each month.
Knowing what drives the number is one thing. Knowing what a specific trip or month of driving will cost you is something you can calculate right now.