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More pain at the pump as fuel prices rise by Sh8 in EPRA review

Business · Rose Achieng · July 14, 2025
More pain at the pump as fuel prices rise by Sh8 in EPRA review
A person fuelling a car. PHOTO/Handout
In Summary

The latest spike is being blamed on increased freight charges, as shipping companies divert vessels to longer, safer routes following recent attacks in the Strait of Hormuz

Kenyans will now dig deeper into their pockets to fuel their vehicles and homes after the Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices, with petrol, diesel and kerosene rising by nearly Sh9 per litre.

This latest adjustment comes as a result of global shipping disruptions triggered by security concerns along major maritime oil routes.

Following EPRA’s latest review, the price of a litre of petrol in Nairobi has gone up by Sh8.99 to Sh186.31, diesel has increased by Sh8.67 to Sh171.58, while kerosene now costs Sh156.58 per litre, up by Sh9.65. This is a jump from the previous prices of Sh177.32, Sh162.91 and Sh146.93 for petrol, diesel and kerosene respectively.

The latest spike is being blamed on increased freight charges, as shipping companies divert vessels to longer, safer routes following recent attacks in the Strait of Hormuz, a key waterway that links the Persian Gulf with the Gulf of Oman and Arabian Sea.

The narrow strait between Iran and Oman handles around 20 per cent of global oil supply and an equal share of liquefied natural gas trade every day.

“There has been a shift by the shipping lines to a longer route which in turn means additional cost, it means the same will be transferred to consumer in the long run hence increase the cost of freight, in one way or the other the cost affects Mombasa,” said Agayo Ogambi, the Chief Executive of the Shippers Council of Eastern Africa.

He added, “Bunker prices are rising rapidly by 15 per cent in the last two weeks, so we expect emergency fuel surcharges. Very tough times ahead.”

This rise in costs is not only being felt at the pump but is also affecting logistics, with ports experiencing congestion due to the misplacement of ships and containers. The Port of Mombasa, Kenya’s main gateway for fuel imports, is among those affected, leading to further delays and demurrage charges.

The disruption has been compounded by the ongoing security threat from Yemen-backed Houthi rebels in the Red Sea. Attacks and threats in that area led some oil companies to temporarily suspend shipments through the route, intensifying the global ripple effects on fuel costs and supply chains.

With global shipping companies adjusting their routes and fuel charges, and with rising bunker prices, experts warn that the situation could remain uncertain for the foreseeable future—potentially keeping fuel prices high in Kenya and other import-dependent countries.

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