Kenya Raises Petrol and Diesel Prices Amid Regional Supply Disruptions

Kenya has raised the maximum retail prices of petrol and diesel, while also increasing the cost of kerosene, amid disruptions affecting fuel production and deliveries.

The government increased the price of petrol by 6% and diesel by 4.5%. The revised retail prices were not specified in the available information.

The changes were announced on Wednesday as escalating attacks on energy infrastructure in the Middle East affected fuel and oil production. Threats to shipping have also disrupted deliveries worldwide.

Pressure on consumers and transport operators

Kenya depends on the Middle East region for nearly all of its fuel supplies, leaving the country exposed to disruptions affecting production and shipments from the region.

Kenya’s transport operator sector warned that the higher fuel prices could have ripple effects on consumers. Increased pump prices are also expected to put renewed pressure on household spending and businesses that rely on diesel-powered distribution and equipment.

Diesel is widely used in freight transport, agriculture, construction and backup power generation. Kerosene is used for cooking, lighting and some electricity generation.

Fuel tax reduction extended

The energy regulator said the government had extended a reduction in value-added tax on fuel. The rate will remain at 8%, down from 16%, until 14 January. The year associated with that date was not specified.

The latest increase follows public opposition to a similar fuel price rise. According to the source report, Kenyans and motorists took to the streets in May this year to protest against the earlier increase.