Govt Announces Fuel Price Reduction as Diesel Drops by Sh10 per Litre
The government has reduced diesel prices by Sh10 per litre and lowered petrol prices slightly for the June 15 to July 14, 2026 review period, attributing the changes to the G2G fuel import programme, a stronger Kenya shilling and continued consumer support measures.
Government Spokesperson Isaac Mwaura. Photo/Courtesy
By Ruth Sang
The government has announced lower fuel prices for the period between June 15 and July 14, 2026, saying it’s thanks to gains from the Government-to-Government (G2G) fuel import programme and because the Kenya shilling is still holding steady against the US dollar
In a statement meant for newsrooms, Government Spokesperson
Isaac Mwaura said diesel will take the biggest hit decrease, falling by Sh10.00 per litre. and super petrol will ease slightly by Sh0.22 per litre. Kerosene, for its part, will stay as it is during the review period.
With the revised figures, diesel will retail at Sh222.86 per litre, while super petrol will sell at Sh214.03 per litre
Mwaura said the newest cutbacks were linked to steps rolled out by President
William Ruto’s administration, aimed at shielding consumers and the economy from the ups and downs of global oil prices
“The reductions are a result of critical interventions by the President, who secured favourable terms through the G2G arrangement as promised, ensuring a steady and sufficient supply of petroleum products” he said, noting that the framework has gone a long way in making fuel imports more reliable
The spokesperson added that the G2G framework has also helped keep local fuel prices steady even when international energy markets start shifting
The government further reiterated that it will keep working to ease the cost of living through tax relief and targeted subsidies. Mwaura said Value Added Tax (VAT) on petroleum products remains at eight per cent, instead of the usual 16 per cent rate, which in turn helps keep pump prices more manageable
He said the reduced VAT rate brings about major savings for households and businesses, with the government giving up roughly Sh28 billion every year to sustain the measure
“The government continues to prioritise the welfare of citizens by maintaining VAT on petroleum products at eight per cent. This intervention has translated into lower fuel prices and savings for consumers” he stated
Mwaura went on to assure Kenyans that petroleum products are available across the country, saying the fuel supply chain is steady enough to meet transport, industrial and household energy needs without any disruption
“Kenya continues to enjoy a stable supply of petroleum products, safeguarding against shortages and ensuring consistent availability across all sectors including transport, industry and households” he added
Separately, alongside the fuel price adjustments, the government said electricity tariffs will remain unchanged during this current review period, a move meant to give consumers and businesses more certainty on how energy costs will behave
Mwaura also pointed to the strengthening of the Kenya shilling against the US dollar as a key element, arguing that it lowers the expense of importing petroleum products and ultimately feeds into cheaper local fuel prices
He added that the government will keep drawing on the Petroleum Development Levy (PDL) Fund to cushion consumers from global oil price shocks. For this cycle, about Sh10 billion from the fund will be used to subsidise diesel and kerosene
“The government will cushion consumers through the Petroleum Development Levy Fund by utilizing approximately Sh10 billion to subsidize diesel and kerosene, protecting consumers from global price fluctuations and supporting economic stability” he said
The government also reiterated its position on fair play and consumer protection in the energy sector, saying this is through transparent pricing approaches that mirror the prevailing market conditions
This latest fuel review, according to the administration, is coming as it continues rolling out measures geared towards lowering the cost of living and backing economic growth, through affordable energy, dependable fuel supplies and cautious fiscal management
Mwaura said the government remains focused on fostering national unity and shared prosperity as it works toward a more resilient, economically stable nation
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