Nairobi, Kenya — The Energy and Petroleum Regulatory Authority (EPRA) has announced a sharp rise in fuel prices in Kenya, attributing the increase to a surge in imported fuel costs. Super petrol and diesel prices have been hiked by 28. 69 Shillings and 40.
3 Shillings per liter, respectively, marking a significant escalation in the cost of fuel. This decision comes in the wake of a surge in global fuel costs, largely due to the ongoing tensions in the Middle East.
The conflict has led to disruptions in shipping through key transit routes, such as the Strait of Hormuz, thereby driving up the price of fuel imports for Kenya, which sources nearly all its fuel from Gulf suppliers.
As the new prices took effect, motorists scrambled to fill up their tanks, leading to long lines at service stations.
The immediate impact was felt across the transportation sector, with public transport fares increasing by about 25 percent overnight, and bus operators raising fares by between $1. 54 and $3. 86.
The rise in fuel prices is expected to have a cascading effect on the broader economy, with the potential to drive up the cost of goods and services. Inflation, which stood at 4. 4 percent in March, may see further upward pressure as a result of these increased costs.
Despite the Kenyan government’s efforts to mitigate the impact, such as reducing the Value Added Tax (VAT) on petroleum products from 13% to 8%, the overall effect has been a substantial increase in logistics costs.
The Kenya Transporters Association has warned that transport costs may rise by 13% to 14%, further straining the economy.
The EPRA’s action reflects the challenges posed by global supply disruptions and the vulnerability of Kenya’s fuel supply chain.
The government’s measures to reduce VAT and stabilize prices may provide some short-term relief, but without a sustained effort to diversify energy sources and improve fuel supply chain management, the country’s fuel crisis is likely to persist, with potential long-term impacts on the economy and public welfare.
*Additional reporting by ImNews | Sources consulted: 5*
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By This original article was produced by the ImNews editorial team
Source: Africanews
Source: AfricaNews
