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Fuel prices drop as EPRA reduces petrol and diesel costs following VAT cut to 8%

Motorists will see relief at the pump after the Energy and Petroleum Regulatory Authority (EPRA) cut the price of Super Petrol and Diesel, citing a government decision to lower Value Added Tax on petroleum products.

In its monthly review covering April 16 to May 14, 2026, EPRA announced that Super Petrol will drop by Ksh9.37 to retail at Ksh197.60 per litre in Nairobi. Diesel falls by Ksh10.21 to retail at Ksh196.63. Kerosene remains unchanged at Ksh152.78 per litre.

The regulator linked the adjustment to a reduction of VAT on petroleum from 13% to 8%, a move the State said was aimed at easing pressure on households.

“This reduction was necessitated by the need to curb the high cost of living,” the announcement stated.

Prices in other towns will be adjusted based on transport and distribution costs from the capital.

The cut offers a breather to commuters and transporters who were bracing for higher fares after earlier increases this month pushed fuel to record levels.

Matatu operators had announced countrywide fare hikes on April 15, arguing that fuel took up the bulk of operating expenses.

Industry players welcomed the revision but noted that pump prices remain near the Ksh200 mark.

The new prices take effect at midnight and will run until May 14, when EPRA is expected to publish the next schedule.

Kerosene, widely used by low-income households, did not benefit from the latest review and stays at Ksh152.78 in Nairobi.

The Ministry of Energy has previously defended the government-to-government import framework as a tool to secure supply, but pressure has mounted for additional measures to cushion consumers.

The VAT cut marks the most direct fiscal intervention on fuel so far this year.

For now, the drop gives households and businesses a modest reprieve as the government weighs further steps to manage living costs.

Clare Ochieng'

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