Kenya Raises Retail Fuel Prices Due to Global Crude Costs
Kenya's energy regulator raised retail fuel prices by up to 24.2 percent as global crude costs rose. The government cut VAT to 13 percent to help consumers.
Kenya has raised its retail fuel prices by as much as 24.2% following a spike in global energy costs, including Brent Crude Oil and West Texas Oil. The Energy and Petroleum Regulatory Authority (EPRA) announced that a litre of petrol increased by 16.1% to 206.97 Kenyan shillings, while diesel rose by 24.2% to 206.84 shillings. Kerosene prices were maintained at 152.78 shillings. The regulator cited a 68.7% rise in the cost of imported petroleum products, largely driven by ongoing conflict in the Middle East. To alleviate the financial pressure on the public, the government implemented a tax adjustment to offset the impact of international market volatility. > The regulator reduced value-added tax on petrol, diesel, and kerosene from 16% to 13% to cushion consumers from the high cost of petroleum products as a result of the escalated prices in the international market. The East African nation secures the majority of its fuel through government-to-government agreements with suppliers in Saudi Arabia and the United Arab Emirates. These partners include Saudi Aramco Trading Fujairah, Abu Dhabi's ADNOC Global Trading Ltd, and Emirates National Oil Company Singapore Ltd, which is based in Singapore. Shortly before the price hikes took effect, motorists in Nairobi rushed to fuel stations, leading to significant congestion as they attempted to fill their tanks at the previous lower rates.
