Kenya among costliest fuel markets as regional prices reveal sharp differences

New fuel price comparisons across East Africa have revealed significant differences in how countries are managing energy costs, with Kenya emerging as one of the region's most expensive markets for fuel products.

The latest May 2026 data shows varying trends in petrol, diesel and kerosene prices across six countries, highlighting the impact of taxation policies, import dependence, subsidy programmes and changing household energy use.

While some countries recorded price reductions or moderate increases, Kenya, Rwanda and Tanzania continue to experience notable pricing pressure in key fuel products.

Rwanda now has the highest petrol prices in East Africa after prices rose sharply from Sh203.09 to Sh259.09.

Kenya follows as the second-most expensive petrol market, with prices increasing from Sh206.97 to Sh214.25.

Tanzania also recorded a rise in petrol costs, moving from Sh189.81to Sh204.67, while Burundi experienced a smaller increase.

Uganda was among the few countries to record a drop in petrol prices, with costs falling from Sh184.55 to Sh179.74.

The figures suggest continued upward pressure in import-reliant economies, especially those heavily exposed to currency fluctuations and taxation structures.

For diesel, Kenya has emerged as the costliest market in the region after prices climbed dramatically from Sh206.84 to Sh242.92.

Tanzania follows behind at Sh184.55, while Rwanda and Uganda remain relatively lower.

Diesel is particularly important because it powers transport systems, freight movement, manufacturing and many industrial activities.

Higher diesel costs often have a wider effect on economies because they can increase the cost of moving goods and operating businesses.

Kenya's position at the top of the regional diesel price list could therefore place pressure on sectors that rely heavily on transport and logistics.

Kerosene prices reveal a different pattern across the region.

Tanzania now has the highest kerosene price after costs jumped from Sh211.34 to Sh232.68, almost double Kenya's Sh152.78, which remained unchanged.

Uganda and Rwanda also recorded increases, while Burundi and Ethiopia maintained lower prices compared to Tanzania.

The difference may reflect changing household energy consumption patterns. Tanzania's high kerosene prices could indicate a stronger transition toward alternative energy sources such as liquefied petroleum gas.

In Kenya, the stable and relatively lower kerosene cost may suggest continued dependence among lower-income households that still rely on the fuel for cooking and lighting.

Across all three products, Ethiopia remains the lowest-cost fuel market in East Africa.

Petrol rose from Sh117 to Sh137.52, diesel moved from Sh134.81 to Sh148.16 and kerosene increased from Sh110 to Sh125.

Despite the increases, Ethiopia's prices remain significantly lower than those of its regional neighbours.

This is largely linked to government-controlled pricing mechanisms and subsidy systems that cushion domestic consumers from international oil price fluctuations and foreign exchange pressures.