Kenya fuel prices hit record highs amid Iran conflict
Kenyans are bracing for higher costs at the fuel pump after the country’s energy regulator announced steep price increases this week, with diesel recording its largest single-period jump yet, even as the government moved to soften the blow through a tax reduction.
The Energy and Petroleum Regulatory Authority (EPRA) raised the price of diesel by 40 Kenyan shillings, pushing it to 206 shillings per litre, roughly $1.60 or £1.20. Petrol climbed by 28 shillings to a comparable level. The regulator attributed the increases to surging global oil and shipping costs, largely driven by the ongoing conflict involving Iran. The new prices take effect immediately and will remain in place until the next scheduled review on 14 May.
In a bid to cushion consumers, the government slashed value-added tax on fuel from 16% to 13%, a measure set to run through July. The cut, however, proved insufficient to offset the scale of the global price surge, with pump prices climbing sharply regardless.
The price hikes arrive at a particularly turbulent moment for Kenya’s petroleum sector, which has been mired in controversy following reports of a substandard fuel consignment imported last month outside the country’s established government-to-government procurement channels and at a significantly inflated cost. Public outrage intensified after reports emerged that the suspect fuel may have been blended with stocks held in government storage tanks. The scandal triggered arrests and prompted the resignation of senior energy officials, with investigations still ongoing.
EPRA moved to distance the new pricing from the controversy, stating on Wednesday that the disputed consignment had not been factored into the computation of the latest prices.
Fuel shortages have also been reported in several parts of the country, though the government has pushed back against those claims, insisting that supply levels remain adequate and pointing the finger at fuel companies it accuses of deliberately hoarding stocks.
The broader backdrop to Kenya’s fuel crisis is a global energy crunch set off by the US-Israel war with Iran, which erupted on 28 February. The conflict brought shipping through the Strait of Hormuz, one of the world’s most critical arteries for oil and gas transit, to a near-standstill. While a conditional two-week ceasefire signed last Wednesday included provisions to reopen the strait, analysts and governments alike remain cautious about whether the reprieve will hold or meaningfully ease the energy crisis.
Kenya is far from alone in grappling with the fallout. Across the African continent, governments have scrambled to shield citizens from the worst of the price shocks. South Africa announced a one-month cut in its fuel levy two weeks ago to limit pump prices, while Zambia, Namibia and Ghana have rolled out similar relief measures. Further afield, South Sudan has resorted to electricity rationing, and Ethiopia has moved to prioritise fuel access for certain critical sectors.
Source: BBC
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