{"id":115409,"date":"2026-05-15T12:32:55","date_gmt":"2026-05-15T09:32:55","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=115409"},"modified":"2026-05-15T12:32:55","modified_gmt":"2026-05-15T09:32:55","slug":"govt-defends-g-to-g-fuel-deal-cites-middle-east-conflict-for-fuel-prices-rise","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2026\/05\/govt-defends-g-to-g-fuel-deal-cites-middle-east-conflict-for-fuel-prices-rise\/","title":{"rendered":"Govt defends G-to-G fuel deal, cites Middle East conflict for fuel prices rise"},"content":{"rendered":"

NAIROBI, Kenya, May 15 – The government has defended the latest increase in fuel prices, attributing the sharp rise in pump costs to volatility in global oil markets driven by the ongoing Middle East conflict, even as businesses and consumers brace for higher transport and production costs.<\/strong><\/p>\n

In a statement issued Friday, the Ministry of Energy and Petroleum said Kenya remains vulnerable to external shocks as a net importer of petroleum products, with international crude prices, freight charges and insurance premiums continuing to surge.<\/p>\n

The explanation comes a day after the Energy and Petroleum Regulatory Authority raised the price of Super Petrol by Sh16.65 per litre and Diesel by Sh46.29 in its latest monthly review.<\/p>\n

In Nairobi, petrol now retails at Sh214.25 per litre while diesel costs Sh242.92, among the highest levels recorded in the country.<\/p>\n

\u201cThe continued geopolitical tensions in the region have disrupted global energy markets, leading to a sharp increase in international crude oil prices, elevated freight and supply chain costs, and increased uncertainty in petroleum product availability across several markets worldwide,\u201d said Opiyo Wandayi.<\/p>\n

\u201cIn the current pricing cycle, the average landed cost of imported Super Petrol increased from USD 823.27 per cubic metre in March 2026 to USD 906.23 per cubic metre in April 2026.\u201d<\/p>\n

The ministry said diesel import costs rose by more than 20 percent during the same period, increasing pressure on transport, manufacturing and logistics sectors that heavily rely on the fuel.<\/p>\n

To cushion consumers, the government said it had deployed about Sh5 billion from the Petroleum Development Levy stabilization mechanism to moderate increases in diesel and kerosene prices.<\/p>\n

The ministry also defended the government-to-government fuel import arrangement, arguing that it has shielded Kenya from even steeper global freight and premium costs amid instability around the Strait of Hormuz.<\/p>\n

The latest fuel adjustment marks the second consecutive month of sharp increases after EPRA last month raised petrol prices by Sh28.69 and diesel by Sh40.30 per litre as global crude markets tightened.<\/p>\n

Economists warn that the latest review could trigger a fresh wave of inflationary pressure across the economy, with higher fuel costs feeding directly into food prices, transport fares and industrial production expenses.<\/p>\n

Kenya\u2019s private sector activity had already contracted for a second straight month in April, partly due to rising fuel-related operating costs.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Ministry of Energy and Petroleum said Kenya remains vulnerable to external shocks as a net importer of petroleum products, with international crude prices, freight charges and insurance premiums continuing to surge.<\/p>\n","protected":false},"author":14438,"featured_media":101795,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10908,11495,934,3898,28159,7983,27164,3995,7197],"coauthors":[9476],"class_list":["post-115409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kenya","tag-cites","tag-defends","tag-featured","tag-fuel","tag-g-to-g-fuel-deal","tag-govt","tag-middle-east-conflict","tag-prices","tag-rise"],"yoast_head":"\nGovt defends G-to-G fuel deal, cites Middle East conflict for fuel prices rise - Capital Business<\/title>\n<meta name=\"description\" content=\"The Ministry of Energy and Petroleum said Kenya remains vulnerable to external shocks as a net importer of petroleum products, with international crude prices, freight charges and insurance premiums continuing to surge. 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