By Bonface Mulyungi
President William Ruto has announced a further reduction in diesel prices beginning the June/July fuel pricing cycle, as the government moves to cushion Kenyans from the effects of the global fuel crisis.
Speaking during a live press address from State House in Mombasa on Friday, President Ruto said the government will lower the price of diesel by Ksh.10 per litre following consultations with leaders in the transport sector.
The President said the move is aimed at stabilizing pump prices and easing pressure on consumers grappling with the rising cost of living.
“I have directed that in the next pricing cycle, we’re going to further reduce the price of Diesel by a further Ksh.10 for the June/July cycle to help stabilize pump prices and provide additional relief to consumers,” said Ruto.
Ruto attributed the current fuel price crisis to global market disruptions triggered by the escalating conflict involving Iran since February 28, 2026, which he said had severely affected oil supply routes through the Strait of Hormuz.
According to the President, the crisis has caused sharp increases in global fuel prices, with diesel prices rising by 118 per cent internationally.
He noted that Kenya, which imports all its fuel from the Gulf region, has inevitably felt the impact of the global supply shock.
The President defended the government’s fuel stabilization measures, saying the State had spent Ksh.28.19 billion across the April/May and May/June 2026 pricing cycles to cushion consumers through direct subsidies and tax relief interventions.
Ruto said the government had also reduced Value Added Tax (VAT) on petroleum products from 16 per cent to 8 per cent, foregoing Ksh.14.4 billion in tax revenue to ease the burden on households and businesses.
According to the President, without the government interventions, diesel prices would currently retail at Ksh.277.75 per litre instead of the current Ksh.232.86.
He further defended the government-to-government fuel import framework, saying it had helped guarantee stable fuel supplies and protected the Kenya shilling from further pressure during the ongoing crisis.
“Through the government-to-government (G2G) fuel supply framework, we have secured guaranteed fuel supplies despite global supply chain disruptions, ensuring uninterrupted fuel supply availability across the country. The arrangement has stabilized fuel pricing compared to the old sport market system, where prices fluctuated sharply every month,” he said.
“Before the G2G arrangement was introduced in 2023, oil importers faced intense pressure to secure US dollars within short timelines, driving rapid depreciation of the Kenya shilling and threatening fuel supply stability. By easing pressure on foreign exchange demand and ensuring predictable supply terms, the framework has protected the economy during the crisis as the one we have now. Without it, the country’s situation would be much worse.”
The Energy and Petroleum Regulatory Authority (EPRA) earlier this week lowered the pump price of diesel by Ksh.10.06 per litre while raising kerosene by Ksh38.60 in a mid-cycle review announced after a day of protests and a transport shutdown by PSV operators over high fuel costs.
EPRA said it recalculated the maximum pump prices to be in force from May 19, 2026 to June 14, 2026 following a petition by public transport operators, citing the need to minimise the risk of fuel adulteration arising from the price difference between diesel and kerosene.
Under the new prices, Super Petrol, Diesel and Kerosene now retail at Ksh.214.25, Ksh.232.86 and Ksh.191.38 per litre, respectively.
The move came a day after matatu operators and other transport stakeholders called a nationwide strike, disrupting movement in several towns as they demanded tax cuts and other interventions to lower pump prices.
