Kenya hikes fuel prices amid higher import costs linked to Middle East conflict

Kenyans can expect more misery at the pump as the government raised the maximum retail price of petrol and diesel on Wednesday.

With the country relying on the Middle East region for nearly all its fuel supplies, it has hiked petrol prices by 6 per cent and diesel by 4,5 per cent.

The cost of kerosene, used for cooking, lighting, and some electricity generation, has also been increased.

Escalating attacks on energy infrastructure in the Middle East has impacted fuel and oil production while threats to shipping have affected deliveries worldwide.

The energy regulator said the government extended a reduction in value-added tax on fuel to 8 per cent from 16 per cent until 14 January.

Kenya’s transport operator sector has warned of ripple effects on consumers following the increased fuel prices.

Higher pump prices will also put renewed pressure on household spending, and business that depend on diesel-powered distribution and equipment.

Diesel is widely used in freight transport, agriculture, construction, and back-up power generation.

In May this year, Kenyans and motorists took to the streets to protest against a similar fuel price hike.