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In a recent press release from the Energy and Petroleum Regulatory Authority (EPRA), Kenyans can expect an increase in the maximum wholesale and retail prices for petroleum products. The revised prices will take effect from 15th July to 14th August 2025.
The new maximum prices for super petrol, diesel, and kerosene will see increases of Sh8.99, Sh8.67, and Sh9.65 per litre, respectively.
In Nairobi, the recommended price for super petrol is Sh186.31 per litre, diesel is Sh171.58 per litre, and kerosene is Sh156.14 per litre.
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A pump attendant fills a car with fuel at the OLA petrol station
International Factors Behind the Increase
The changes are attributed to an increase in the landed cost of imported super petrol, diesel, and kerosene.
According to the EPRA data, the price of super petrol rose by 6.45% from US$590.24 per cubic metre in May 2025 to US$628.30 per cubic metre in June 2025.
Similarly, diesel saw a 6.27% increase, while kerosene rose by 6.95% over the same period.
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Expected Impact on Consumers
For consumers, the increased fuel prices are likely to lead to higher transportation and energy costs across the country. The impact will be felt across sectors that depend on fuel for production, transportation, and energy generation.
EPRA’s announcement aims to provide clarity on these price adjustments and highlights that the increases are designed to reflect the global fuel price landscape while maintaining fairness in the local market.
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A petrol station attendant fuelling a car
Taxes & Levies
EPRA also released a detailed breakdown of the cost structure for super petrol, diesel, and kerosene in Nairobi for the period between 15th July and 14th August 2025.
The landed cost of these products is calculated as follows: super petrol costs Sh81.88 per litre, diesel costs Sh80.22 per litre, and kerosene costs Sh79.41 per litre.
For all three products, pipeline transport costs are set at Sh2.79 per litre, and there are no additional charges for road transport (bridging) during this period.
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The cost of delivering fuel within 40km of Nairobi is Sh1.18 per litre for each of the products.
The margin for oil marketing companies consists of a wholesale margin of Sh6.14 for super petrol, Sh6.06 for diesel, and Sh5.99 for kerosene.
Retail investment and operating margins are consistent across all products at Sh11.25 per litre.
EPRA fuel price hike: How taxes contribute to the cost of fuel in Kenya
Taxes and levies account for a significant part of the total cost.
Excise duty is Sh21.95 per litre for super petrol, while diesel and kerosene are taxed at Sh11.37 per litre each.
The Petroleum Development Levy is Sh5.40 per litre for super petrol and diesel, and Sh0.40 per litre for kerosene.
The Petroleum Regulatory Levy is Sh0.75 per litre for all three products, and the Railway Development Levy ranges from Sh1.56 for super petrol to Sh1.52 for kerosene.
The Anti-adulteration Levy is zero for super petrol and diesel but set at Sh18.00 for kerosene.
Finally, after adding all land costs, distribution, margins, and taxes, the final retail prices for Nairobi are as follows: super petrol is Sh186.31 per litre, diesel is Sh171.58 per litre, and kerosene is Sh156.14 per litre.
When we compare the landed costs, the taxes and levies
Super Petrol: The taxes and levies contribute Sh62.33, which is 76.1% of the landed cost (Sh81.88).
Diesel: The taxes and levies contribute Sh69.67, making up 86.8% of the landed cost (Sh80.22).
Kerosene: The taxes and levies contribute Sh55.14, which is 69.4% of the landed cost (Sh79.41).