Questions have emerged over the government's decision to spend Ksh11.5 billion stabilising diesel and kerosene prices in the last two fuel reviews, even as kerosene accounts for less than 1 per cent of national petroleum demand.

🇰🇪 Breaking It Down

On Thursday, May 14, the Energy and Petroleum Regulatory Authority raised the price of diesel by Ksh46.29 to Ksh242.92 a litre in Nairobi. Petrol went up by Ksh16.65 to Ksh214.25. Kerosene remained unchanged at Ksh152.78.

Energy Cabinet Secretary Opiyo Wandayi said on Friday that the government had spent Ksh5 billion to moderate the increases.

"The government has utilised the Petroleum Development Levy stabilisation mechanism to cushion the prices of diesel and kerosene during this review period," Wandayi said.

📌 What You Need to Know

The intervention follows an executive directive issued last month, when Wandayi told a public meeting in Siaya County that President William Ruto had personally instructed the regulator to freeze kerosene at Ksh152.78 per litre, despite sharp increases in petrol and diesel.

Combined with the Ksh6.5 billion subsidy announced in April, the government has now spent more than Ksh11 billion in two months to cushion fuel prices, with kerosene singled out for full stabilisation in both cycles.

The decision has prompted questions over why kerosene has been prioritised when diesel and petrol dominate national consumption.

An analysis by Kenyans.co.ke shows that kerosene accounted for just 0.8 per cent of domestic petroleum demand in 2025, compared with 42.3 per cent for light diesel oil, according to the Kenya National Bureau of Statistics' Economic Survey 2026.

Motor gasoline, both premium and regular, accounted for about 29 per cent of demand last year, which is 36 times the volume of kerosene consumed over the same period.

Demand for kerosene has collapsed over the past five years, falling to 44,100 tonnes in 2025 from 111,300 tonnes in 2021, a drop of more than 60 per cent.

📰 Source: Kenyans.co.ke