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Hassan Omar during a press briefing on the recent fuel price adjustments and Government measures to cushion consumers from rising global oil prices at the UDA headquarters, Nairobi, on May 19, 2026. |
The ruling United Democratic Alliance has defended the latest fuel price adjustments, with UDA Secretary General Hassan Omar saying Government intervention measures have shielded Kenyans from an even steeper rise in pump prices amid escalating global oil market disruptions linked to the ongoing US/Israel-Iran conflict.
Hassan said the partial disruption of the Strait of Hormuz, one of the world’s most critical oil transit routes, had triggered sharp increases in global crude oil prices, freight charges and insurance premiums, consequently affecting petroleum import costs in Kenya.
He said the Government had moved swiftly to cushion consumers and stabilize the local market through tax reductions, fuel subsidies and the Government-to-Government (G-to-G) petroleum import arrangement.
“Without these interventions, fuel prices would by now have exceeded KSh 300 per litre,” said Hassan.
He explained that the pump price of fuel is determined by a combination of landed costs, storage and distribution charges, taxes and levies, as well as supplier margins.
Hassan said landed costs include several international market-related expenses such as Free on Board (FOB) fuel prices, financing costs through Letters of Credit, freight and premium charges, insurance costs, port handling fees and testing charges.
“These costs have all risen significantly due to the disruptions and market pressures occasioned by the ongoing war, including elevated global crude oil prices, increased shipping risks, higher insurance premiums and longer maritime routes following the disruption of key trade corridors,” he said.
Hassan dismissed comparisons between Kenya’s fuel prices and those of neighboring countries, arguing that different economies operate under unique fiscal policies, taxation systems, energy structures and supply chain conditions.
“Comparisons between Kenya’s fuel prices and those of neighboring countries are often economically misleading because each country operates under distinct fiscal, macroeconomic, energy and supply-chain conditions,” he said.
The UDA Secretary General defended the G-to-G fuel supply framework, describing it as a key buffer protecting the country from volatile international spot market prices.
He said Kenya is currently saving KSh 19.51 per litre of Super Petrol, KSh 20.72 per litre of Diesel and KSh 18 per litre of Jet A1/Kerosene compared to prevailing spot market prices.
Hassan said premium and freight charges under the G-to-G framework remain fixed at USD 84 per metric ton, significantly lower than current spot market charges of USD 284.90 for Super Petrol, USD 266.70 for Diesel and USD 272.03 for Jet A1/Kerosene.
To further cushion consumers, he said the Government recently reduced Value Added Tax (VAT) on Super Petrol, Diesel and Kerosene from 16 per cent to 8 per cent.
Hassan added that KSh 16.08 billion has so far been utilized under the fuel stabilisation programme during the 2025/2026 financial year to cushion consumers from rising global prices.
He said KSh 11.04 billion has already been applied since the onset of the current international crisis, with plans underway to continue utilizing the Petroleum Development Fund in future pricing cycles.
The statement comes amid growing public concern over rising fuel prices that have disrupted transport operations and increased pressure on the cost of living across the country.
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