Treasury Cabinet Secretary John Mbadi has explained why the Energy and Petroleum Regulatory Authority (EPRA) retained kerosene prices in its latest fuel review, even as petrol and diesel prices increased sharply amid the ongoing Middle East crisis.

Speaking during an interview on a local TV station on Monday, May 18, 2026, Mbadi said the government deliberately kept kerosene prices unchanged because its consumption in Kenya is lower compared to diesel and petrol.

“This is a world crisis, and if we continue like this, it will be like COVID. It is a problem that only America and Iran have to solve. They must stop the war. If they do not stop the war, we will somehow have to live with some consequences,” he said.

On May 14, 2026, EPRA announced new maximum retail fuel prices for the May 15 to June 14, 2026 cycle.

Under the latest review, Super Petrol increased by Ksh16.65 and Diesel by Ksh46.29, while Kerosene remained unchanged.

Explaining the decision, Mbadi said diesel had already received the largest subsidy because it is the most consumed fuel product in the country.

“In fact, in the April price review, we subsidised diesel more than any of the three. The reason why kerosene has not risen is because the consumption of kerosene is very low,” he said.

“Diesel consumption in this country is the highest among the three products. That is why the price of diesel has gone up, but if we left it without cushioning, it would not be Ksh242 per litre; it would be much higher. It would not be less than Ksh273 per litre.”

Following the review, pump prices in Nairobi for Super Petrol and Diesel rose to Ksh214.25 and Ksh242.92 respectively, while kerosene remained unchanged at Ksh152.78.

EPRA said the government would cushion consumers during the May-June cycle through the Petroleum Development Levy (PDL) Fund by utilising approximately Ksh5 billion to subsidise Diesel and Kerosene prices.

Inflation fears

Mbadi noted that the current fuel crisis had not been caused by shortages, but by logistical disruptions linked to the Iran war, which had increased the landing cost of fuel imports.

“The World Bank has already revised inflation rates because fuel prices across the globe have been recognised to be rising, and that is a factor. They have also reduced economic growth projections. This is being done worldwide, and it cannot be a Kenyan problem,” he said.

The CS added that the government would engage matatu operators to explain the measures already taken to stabilise fuel prices and the challenges facing the state.

“We will have a discussion with players in the matatu sector to help them understand where we are, what the government has done and what the government is still doing,” Mbadi said.

“We could not exhaust the stabilisation fund, we had to leave Ksh5 billion to take us to the next financial year because if we cushion 100 per cent today and then next month we have zero, the prices will go to over Ksh300. It will be a worse crisis than we are in today.”

The sharp rise in fuel prices is expected to increase pressure on transport costs and inflation, with concerns that prolonged instability in the Middle East could further strain consumers and businesses.