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Fuel Price Jolt Undercuts Supply Relief Pledge

Diesel and gasoline prices rise days after officials assured supply was returning to normal

May 4 , 2026

A week after federal authorities assured that diesel supply had returned to “pre–Middle East war” levels and that market conditions were stabilising, the latest fuel price adjustment has pushed pump prices sharply higher, undercutting expectations that pressure on transport operators and consumers would begin to ease.

Diesel, sold at 163 Br a litre a month ago after an adjustment by federal trade authorities, climbed to 180.46 Br under the latest schedule. The increase, about 11pc, adds a fresh layer of cost to an economy already dealing with fuel disruptions and the pass-through effects of transport expenses on consumer prices.

The price rise followed Finance Minister Ahmed Shide’s press conference on April 29, 2026, where he told reporters that the government had decided to restore national diesel supply from 4.5 million litres to nine million litres a day. His statement raised expectations that shortages and transport bottlenecks would gradually ease after weeks of strain.

Instead, the new adjustment has shifted attention from supply recovery to affordability.

Benzene, widely used by transport service providers, surged from 142.41 Br to 167.50 Br a litre. The 25 Br increase represents about 18pc, deepening the cost pressures facing service providers and consumers.

The adjustment was signed by Abdulkerim Mulu (PhD), state minister for Trade & Regional Integration (MoTRI). The new retail prices take effect on May 4, 2026, placing the increase almost immediately after the Finance Minister’s assurance that market conditions were stabilising.

Kerosene recorded the steepest jump, more than doubling from 151.39 Br to 320.66 Br a litre, an increase of roughly 112pc. The scale of the adjustment makes it one of the sharpest increases in recent fuel pricing decisions and places a heavier burden on users exposed to household and small-scale energy costs.

Jet fuel followed the same course, climbing to 319.76 Br a litre, more than double its previous price. The increase is expected to put pressure on aviation-related costs and logistics chains at a time when higher fuel prices are already filtering through transport services and consumer spending.

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