Kenya’s Energy and Petroleum Regulatory Authority (EPRA) announced a sharp increase in fuel prices on Tuesday, raising the cost of super petrol by 28.69 Kenyan shillings per liter and diesel by 40.3 shillings per liter. The hikes, which took effect immediately, are a direct consequence of surging import costs driven by global market volatility linked to the ongoing Middle East crisis.
Motorists Rush to Beat Price Rises
In the hours before the new prices came into force, long queues formed at service stations across Kenya as drivers scrambled to fill their tanks. The rush was especially pronounced in urban centers, where the sudden spike in prices caught many motorists off guard. Transport operators were quick to pass on the increased costs to passengers, with minibus fares rising by approximately 25 percent overnight.
Bus operators also adjusted their fares, with increases ranging from \.54 to \.86 on key routes. For millions of Kenyans who depend on public transportation daily, the hike represents a significant added burden at a time when household budgets are already stretched.
Broader Economic Ripple Effects
The impact of higher fuel prices extends far beyond the transport sector. Fuel is a key input across the Kenyan economy—from manufacturing to agriculture to retail—with price increases filtering through into the cost of goods and services. Analysts warn that inflation could rise further in the coming weeks as the full effect of the price hikes works through the system.
Kenya sources nearly all of its fuel from Gulf suppliers in Saudi Arabia, the UAE, and Bahrain, making it highly exposed to disruptions in international oil markets. The ongoing Middle East conflict has destabilized global supply chains and pushed crude prices upward, translating into higher costs at the pump for Kenyan consumers.
Inflation Pressures Mount
Kenya’s inflation rate stood at 4.4 percent in March, up from 4.3 percent the previous month, with price pressures steadily building. The latest fuel price hike is expected to accelerate this trend, adding to concerns about the cost of living in the country.
The government faces growing pressure to cushion the impact on ordinary citizens, particularly those in lower-income brackets who spend a disproportionate share of their earnings on fuel and transport. Whether additional measures will be introduced to mitigate the effects remains to be seen.
Source: Africanews