🚛 Diesel Prices in Kenya Today: The Engine of the Economy and the EPRA Pricing Formula (Updated December 2025)
Diesel (Automotive Gas Oil or AGO) is the undisputed workhorse of the Kenyan economy, fueling the transport sector, powering industrial production, and sustaining the agricultural backbone. Therefore, the diesel prices in Kenya today are far more critical to inflation and economic stability than petrol costs. A gasoline diesel and kerosene prices rise in the philippines or Kenya is an immediate threat to the cost of living.
Like petrol, the maximum retail price of diesel is strictly set by the Energy and Petroleum Regulatory Authority (EPRA) every month. This comprehensive analysis breaks down the factors that influence the EPRA diesel price, reveals the fixed rates for the current cycle (including the recently announced Christmas/New Year prices), and explains the steep logistical premium paid by inland consumers, including those in Chuka, Tharaka-Nithi County.
Price Update: The Diesel Price Next Week (December 2025/January 2026)
As of Monday, December 8, 2025, the diesel price next week and through the Christmas and New Year period is already determined by EPRA's regulated calendar.
The most recent EPRA announcement (November 14, 2025) fixed the prices currently in effect, marking the third consecutive month of stable prices. These prices are fixed until the next review date.
| Town | Diesel Prices in Kenya Today (KSh/Litre) | Price Period |
| Nairobi | KSh 171.47 | Nov 15, 2025 – Dec 14, 2025 |
| Mombasa | KSh 168.19 | Nov 15, 2025 – Dec 14, 2025 |
| Chuka | KSh 173.93 | Nov 15, 2025 – Dec 14, 2025 |
Anticipating the Next EPRA Review (December 14, 2025)
The new fuel prices in kenya today 2025 that will take effect from December 15, 2025, to January 14, 2026, will be announced by EPRA on or around December 14, 2025. This review will be based on:
Global Middle Distillate Cost: The average price of refined diesel imports over the preceding month.
KES/USD Exchange Rate: The strength of the Kenyan Shilling against the dollar. A stable shilling will help maintain the current price stability.
1. The Diesel Difference: Global and Local Demand Drivers
While tracking gasoline prices near me is common for private motorists, diesel prices in Kenya are a critical macroeconomic indicator.
Global Industrial Demand: Diesel is structurally classified as a middle distillate. Its international wholesale gasoline prices today (and for diesel's equivalent) are influenced by global industrial output, freight costs, and the need for heating oil in colder regions. When global demand for commodities is high, a sharp gasoline prices rise in the diesel category is common. Conversely, a potential gasoline kerosene prices drop might be observed if international trading signals lower demand for these heavier products.
Local Economic Input: In Kenya, the diesel price per litre directly affects nearly all sectors—from agriculture (tractor fuel) and power generation (backup generators) to logistics. A sustained gasoline and diesel prices increase immediately leads to higher operational costs for every business, creating cost-push inflation for goods and services across the country.
2. Deconstructing the EPRA Diesel Price Formula
The maximum retail price for diesel is calculated using EPRA's regulated formula, ensuring that the petrol price in kenya today and the diesel price reflect prudently incurred costs, including taxes and logistics.
A. Landed Cost - The Imported Volatility
This is the largest and most volatile component. EPRA's review for the current cycle noted that the average landed cost of imported Diesel increased by 1.81% (from US$623.75 to US$635.05 per cubic metre). The fact that EPRA held prices unchanged despite this increase suggests the use of the Petroleum Development Levy (PDL) to stabilize the price and prevent a sharp gasoline prices increase.
Global Benchmarks: The dollar cost of imported diesel is linked to global RBOB gasoline prices and their diesel equivalents.
KES/USD Exchange Rate: Since Kenya imports all its refined diesel, the local diesel prices in Kenya today are highly vulnerable to the US Dollar exchange rate. A weakening KES immediately pushes the KES-denominated Landed Cost up, acting as a relentless upward pressure on the final pump price.
B. Taxes and Levies - The Fixed Burden
This component includes mandatory government charges and taxes, providing a fixed floor beneath the price.
Tax Structure: The price includes the 16% Value Added Tax (VAT), Road Maintenance Levy, Petroleum Development Levy (PDL), and other excise duties, which are revised for inflation annually as per the Tax Laws (Amendment) Act 2024. These fixed costs are a major reason why seeking the cheapest gasoline prices near me (or diesel) within the country yields limited results, as all sellers must apply the same levies.
3. The Logistical Premium: Why Diesel is Costlier Inland
Price variations across different towns in Kenya are fixed and non-negotiable, determined solely by the cost of secondary transportation ($T_{S}$). This is the cost to move fuel from the port (Mombasa) and main depots to the retail station.
| Town | Diesel Price (KSh/L) | Price Difference from Mombasa (KSh/L) | Logistical Implication |
| Mombasa | KSh 168.19 | KSh 0.00 | Nearest the port and bulk storage. |
| Nairobi | KSh 171.47 | KSh 3.28 | Cost of pipeline and primary road transport. |
| Chuka | KSh 173.93 | KSh 5.74 | Reflects the high road transport tariff for remote, inland locations. |
The fixed KSh 5.74 difference between Mombasa and Chuka for diesel is a clear illustration of the logistical premium. Businesses in remote regions pay this higher wholesale gasoline prices component, leading to higher operational costs that contribute to regional economic disparity. This pricing mechanism is similar to the challenges faced in archipelagic nations where logistical costs drive the overall Philippine gasoline prices hike.
Conclusion: The Predictability of a Regulated Market
For businesses dependent on the diesel price in Kenya today, the EPRA regulatory framework offers predictability, though not necessarily affordability. The maximum diesel price next week is fixed for the current cycle. The only consumer strategy available is to anticipate the December 14th announcement by monitoring the global crude oil trends (which set the Landed Cost) and the stability of the KES/USD exchange rate.
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