Kenya Fuel Prices Surge Despite Tax Cuts Amid Iran War Crisis
Kenya has implemented a sharp increase in petroleum prices, with diesel rising by a record 40 shillings to 206 shillings per litre and petrol increasing by 28 shillings. This significant hike occurs despite the government reducing value added tax on fuel from 16% to 13% in an effort to cushion consumers. The Energy and Petroleum Regulatory Authority attributes the price surge to escalating global oil and shipping costs driven by the ongoing conflict between the US-Israel alliance and Iran, which began in late February. Although a conditional ceasefire was recently signed to reopen the Strait of Hormuz, shipping disruptions persist, keeping global supply chains strained. Domestically, the situation is compounded by reports of fuel shortages in various regions and public outrage over a controversial, allegedly substandard fuel consignment imported outside government arrangements. While the government insists national stocks are sufficient and accuses marketers of hoarding, the scandal has led to the arrest of senior energy officials. These measures align Kenya with other African nations like South Africa and Zambia, which have also introduced tax cuts or rationing to manage the deepening energy crisis.
Wire timeline
Kenya Fuel Prices Surge Despite Tax Cuts Amid Iran War Crisis
Kenya has implemented a sharp increase in petroleum prices, with diesel rising by a record 40 shillings to 206 shillings per litre and petrol increasing by 28 shillings. This significant hike occurs despite the government reducing value added tax on fuel from 16% to 13% in an effort to cushion consumers. The Energy and Petroleum Regulatory Authority attributes the price surge to escalating global oil and shipping costs driven by the ongoing conflict between the US-Israel alliance and Iran, which began in late February. Although a conditional ceasefire was recently signed to reopen the Strait of Hormuz, shipping disruptions persist, keeping global supply chains strained. Domestically, the situation is compounded by reports of fuel shortages in various regions and public outrage over a controversial, allegedly substandard fuel consignment imported outside government arrangements. While the government insists national stocks are sufficient and accuses marketers of hoarding, the scandal has led to the arrest of senior energy officials. These measures align Kenya with other African nations like South Africa and Zambia, which have also introduced tax cuts or rationing to manage the deepening energy crisis.
BBC News