Energy and Petroleum Cabinet Secretary, CS Wandayi, has indicated that international oil prices have peaked and begun to level off, with early signs of a downward trend.
Speaking in an interview on Monday, June 15, CS Wandayi noted that if the current diplomatic developments between the United States and Iran remain stable, global crude and refined product prices could continue easing in the coming months.
“If you look at that progression, you will find that the international benchmark price has peaked sometime in April. From May, there’s a level, it’s leveled, and then there’s an indication of it going down. It will definitely go down if that truce holds, I can tell you,” CS Wandayi explained.
“And if that happens, I can tell you again that you will be seeing better and better results.”
According to the energy CS, such movements are already visible in international market data and cannot be concealed, as price changes are immediately reflected in global trading systems.
CS Wandayi Explains How Domestic Prices Are Tied to Monthly Import Cycle
CS Wandayi explained that Kenya’s fuel pricing system is closely linked to monthly import cycles, during which the country imports approximately 600 million liters of petroleum products, including diesel, petrol, and jet fuel.
Also Read: CS Wandayi Reveals Causes of Nairobi Power Outages After Heavy Rains
He stated that local consumption closely matches import volumes, indicating limited buffer stocks.
“What we import in a month is largely what actually is consumed, okay? So we hardly have in excess stocks,” he said.
As a result, international price changes are transmitted to the domestic market within a short period, with adjustments reflected in the next pricing cycle.
One-month lag expected in pump price changes
During the interview, the Cabinet Secretary was asked how quickly Kenyan consumers would feel the impact of lower international fuel prices if the US–Iran understanding leads to a sustained decline in global oil markets.
Also Read: EPRA Announces Reduction of Petrol and Diesel Prices for June/July Cycle
The interviewer also sought clarification on how long it takes for changes in global fuel markets to be reflected at local petrol stations.
In response, Wandayi said improvements in the international market would be felt locally within a short period.
“And therefore, as the improvements happen in the international market, those improvements will be felt not so long from now,” he stated
The interviewer then asked whether Kenya is essentially only a month behind international fuel market movements.
Wandayi agreed, replying “Correct” when asked whether the country should be only a month behind and whether both international fuel price gains and shocks should be reflected locally within the same timeframe.
EPRA Announces Reduction of Petrol and Diesel Prices for June/July Cycle
The Energy and Petroleum Regulatory Authority (EPRA) has announced revised maximum retail prices for petroleum products in accordance with Section 101(y) of the Petroleum Act, 2019 and Legal Notice No. 192 of 2022. The new prices will apply from 15 June 2026 to 14 July 2026.
During the review period, Super Petrol has decreased by KSh 0.22 per litre while Diesel has dropped by KSh 10.00 per litre. The price of Kerosene remains unchanged.
In Nairobi, Super Petrol will retail at KSh 214.03, Diesel at KSh 222.86, and Kerosene at KSh 191.38 effective midnight for the next 30 days.
According to EPRA, the prices include Value Added Tax (VAT) as provided under the VAT Act, 2013, the Finance Act, 2023, the Tax Laws (Amendment) Act 2024, and excise duty adjustments based on inflation under Legal Notice No. 194 of 2020.
Additionally, the authority stated that the government will also subsidize diesel and kerosene through the Petroleum Development Levy (PDL) Fund, allocating approximately KSh 10 billion to cushion consumers in the current pricing cycle.
Follow our WhatsApp Channel and X Account for real-time news updates.
