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Epra fuel prices review
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Fuel consumption defies steep price increments

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Kenya’s diesel and petroleum consumption increased in the first six months of 2026.


Photo credit: Nation Media Group

Kenya’s diesel and petroleum consumption increased in the first six months of 2026 despite a sharp rise in pump prices, pointing to the pain borne by consumers amid higher transport and operating costs.

Total diesel consumption rose by 10.6 percent in the first half of the year to 1.3 million tonnes from 1.2 million tonnes in a similar period of 2025, while petroleum consumption rose by 8.5 percent to 866,170 tonnes from 798,310 tonnes.

Average consumption of diesel was about 213,300 tonnes per month in the six months to June, up 1.4 percent from an average of 210,300 tonnes last year, while that of petrol rose by 8.5 percent to 144,360 tonnes from 133,050 tonnes last year, latest data from the Kenya National Bureau of Statistics shows.

The jump defied a rise in fuel prices, which saw both diesel and petrol cross the Sh200 per litre mark for the first time, signalling a rare consumption resilience in the face of economic disruption.

The Energy and Petroleum Regulatory Authority in its monthly pricing cycle to September 14,2026 has set the retail prices of a litre of super petrol, diesel and kerosene in Nairobi at Sh214.03, Sh217.86 and Sh191.38 per litre, respectively.

Diesel prices in the first six months of 2026 averaged at Sh192.77 per litre, up 15.8 percent from last year’s Sh166.48, while that of super petrol was roughly Sh194.87, a rise of 10.2 percent from Sh176.76.

The price increases were particularly pronounced in May and June, when the effects of the Iran conflict, which led to the closure of the Strait of Hormuz, began to trickle down to the country, pushing fuel prices to record levels.

Yet both diesel and petrol consumption remained relatively strong, reaching higher levels in May and June 2026, compared to last year. The figures suggest that higher pump prices have so far had a limited impact on overall diesel demand, a deviation from past trends, when fuel price increase led to significant shocks in consumption.

In 2023, for instance, when prices jumped due to the doubling of VAT and earlier removal of fuel subsidy, consumption jumped to a five-year low amid increased cost of living in the country.

Diesel is widely used in commercial transport, industry, agriculture and other productive activities, meaning demand can remain relatively inelastic when businesses and other users have limited alternatives to the fuel.

Petrol, on the other hand, is used largely for spark-ignition engines like in private cars or motorcycles, and its demand is closely linked to road transport and household or personal mobility.

The divergence between prices and consumption was most pronounced in diesel, where prices increased substantially while consumption remained broadly stable.

Global oil prices surged during the first half of the year, contributing to higher domestic pump prices.

Kenya’s national average diesel price peaked at Sh232.86 per litre in May, while premium petrol reached Sh214.25 per litre during the same month.

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