Kenya's fuel prices reach record highs despite tax cuts amid global oil price surge
via The Namibian2 min read
Kenya has significantly increased petroleum prices, with diesel costs rising by a record 40 Kenya shillings to 206 shillings per litre, and petrol by 28 shillings to a similar level. This adjustment, effective until May 14, reflects higher global oil and shipping expenses, even after the government reduced value-added tax on fuel from 16% to 13%. Fuel shortages have been reported in some areas, though the government attributes this to hoarding by companies. The price hikes coincide with a global fuel crisis stemming from the United States-Israel war with Iran, which began on February 28, impacting global oil prices and shipping routes like the Strait of Hormuz. The situation is further complicated by controversy surrounding an allegedly substandard fuel consignment imported last month outside official government arrangements, which led to arrests and resignations of senior energy officials and is currently under investigation. The Energy and Petroleum Regulatory Authority confirmed this disputed consignment was not factored into the new price calculations. Kenya's VAT cut is set to last until July, mirroring measures taken by other African nations like South Africa, Zambia, Namibia, and Ghana to mitigate the impact of rising fuel costs on consumers.
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This summary was AI-generated from a story originally published by The Namibian.
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