Relief for Motorists as Petrol Drops to KSh 197.60, Diesel to KSh 196.63 After VAT Cut

Motorists and households are set to get slight relief after the Energy and Petroleum Regulatory Authority (EPRA) announced a downward adjustment of fuel prices following a revision of Value Added Tax (VAT).

In a press release issued on Tuesday, April 15, 2026, EPRA said the Cabinet Secretary for the National Treasury had reduced VAT from 13 per cent to 8 per cent through Legal Notice No. 70 dated April 15, 2026.

According to the regulator, the tax cut prompted a recalculation of maximum retail petroleum prices, which will now apply between April 16 and May 14, 2026.

“As a result, the pump price per litre in Nairobi of Super Petrol and Diesel decreases by KSh9.37 per litre and KSh10.21 per litre respectively while that of Kerosene remains unchanged,” EPRA stated.

EPRA further noted that the subsidy on kerosene has also been reduced, dropping from KSh108.10 per litre to KSh96.56 per litre under the new pricing structure.

The regulator explained that the revised prices take into account the lower VAT rate, offering temporary relief to consumers who had been grappling with high fuel costs.

The latest review comes just a day after EPRA announced sharp increases in fuel prices, where Super Petrol had risen by KSh28.69 per litre and Diesel by KSh40.30 per litre, triggering public concern over the rising cost of living.

The earlier hike had been attributed to global oil price pressures and exchange rate fluctuations, which have continued to impact Kenya’s fuel pricing model.

President William Ruto, while addressing the public in Kisii, acknowledged the burden of high fuel prices and announced plans to lower VAT to cushion consumers, a move that has now been effected through the Treasury directive.

However, questions had emerged over the legality of reducing VAT below the statutory threshold, with analysts noting that the law typically provides a minimum band for such adjustments.

With the new changes now in force, consumers are expected to experience modest relief at the pump, although concerns remain over the sustainability of the intervention beyond the current pricing cycle.