Global oil prices have continued to rise in the past few days ahead of the Energy and Petroleum Regulatory Authority (EPRA) fuel price review, raising concerns about a possible increase in fuel prices in Kenya.
Brent crude rose by more than 9% in Asian trading to surpass $100 per barrel, while West Texas Intermediate (WTI) crude futures jumped toward $95 per barrel on Thursday, March 12, marking a second straight session of gains.
This comes despite an announcement by the International Energy Agency (IEA) that its 32 member countries would release 400 million barrels of oil from emergency reserves, marking the biggest coordinated drawdown since the agency was created in the aftermath of the 1973 oil embargo.
Global Oil Prices Rise Despite Plans to Release 400 Million Barrels from Reserves
The IEA did not set out a timeline for when the stocks would hit the market. It said that the reserves would be released over a time frame that is appropriate to the circumstances of each of its 32 member countries.
“The conflict in the Middle East is having significant impacts on global oil and gas markets, with major implications for energy security, energy affordability and the global economy for oil,” IEA Executive Director Fatih Birol said.
“I can now announce that IEA countries have unanimously decided to launch the largest-ever release of emergency oil stocks in our agency’s history.”
Also Read: Iraq Joins Iran in Disrupting Global Oil Supply
IEA members represent around two-thirds of global energy production and consumption.
The release of reserves is more than double the previous IEA record, which came after Russia’s invasion of Ukraine in 2022.
The surge in prices comes as persistent concerns over the ongoing tensions involving Iran continue to overshadow efforts by major economies to stabilize the market through a coordinated release of oil reserves.
Iraq halted operations at its oil terminals after two oil tankers were targeted in Iraqi waters.
Iran has also reportedly told intermediaries that the United States must guarantee that neither it nor Israel will strike the country in the future for a ceasefire to be considered—conditions Washington is unlikely to accept.
Also Read: Kenya Addresses Looming Fuel Shortage and Price Hike Amid Middle East Crisis
Earlier on Wednesday, Iran warned that oil prices could surge to $200 per barrel as its attacks on ships intensify in the Strait of Hormuz, a critical waterway through which a significant portion of the world’s oil supply passes.
The narrow shipping route is crucial to the global economy as about a fifth of the world’s energy supplies usually pass through it.
Global oil markets have been extremely volatile since the US and Israel launched airstrikes against Iran on 28 February, with Brent crude reaching almost $120 a barrel earlier this week.
That has pushed up fuel prices around the world.
Kenya Stares at New Inflation Pressure
Kenyans are staring at a petrol shortage crisis beginning at the end of this month, as the wave of global ramifications from the war in Iran starts to hit home.
A major Abu Dhabi Oil Company (Adnoc) refinery that supplies fuel to Kenya and Uganda was hit in the ongoing war between the US and Iran.
During the February review, the Energy and Petroleum Regulatory Authority (EPRA) announced a reduction in fuel prices for the period from February 15 to March 14, 2026.
According to the review released on February 14, the maximum pump prices for Super Petrol, Diesel, and Kerosene decreased by KSh 4.24, KSh 3.93, and KSh 1.00 per litre, respectively.
As a result, the revised retail prices in Nairobi stood at KSh 178.28 for Super Petrol, KSh 166.54 for Diesel, and KSh 152.78 for Kerosene.
