Kenya has increased the maximum retail prices of petrol, diesel and kerosene amid rising fuel import costs linked to the ongoing conflict in the Middle East.
The price adjustment, announced on Wednesday, is expected to increase transportation and household expenses in a country that depends heavily on fuel supplies from the Middle East.
Petrol prices rose by six per cent, while diesel prices increased by 4.5 per cent. The cost of kerosene, widely used for cooking and lighting, as well as in some electricity generation, was also raised.
The increases come as escalating attacks on energy infrastructure in the Middle East disrupt oil and fuel production, while threats to shipping routes affect deliveries to markets worldwide.
Kenya’s energy regulator said the government had extended a reduction in value-added tax on fuel, maintaining the rate at eight per cent instead of 16 per cent until January 14.
Despite the tax relief, transport operators have warned that the higher fuel prices could trigger further increases in the cost of goods and services, with consumers likely to bear the impact.
The price adjustment is also expected to put additional pressure on household budgets and businesses that depend on diesel-powered vehicles, machinery and distribution networks.
Diesel is widely used in freight transportation, agriculture, construction and backup electricity generation, making its price a significant factor in operating costs across several sectors of the Kenyan economy.
The latest increase comes months after motorists and other Kenyans took to the streets in May to protest against a similar fuel price hike, highlighting public concerns over rising living costs.
