Kenya fuel prices rise sharply despite reduction in tax due to Iran war

Diesel prices rise by a record margin despite a reduction in value added tax. Kenya fuel prices rise sharply despite reduction in tax due to Iran war Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Copyright current_year BBC. All rights reserved. The BBC is not responsible for the content of external sites. Read about our approach to external linking. Shortages of fuel have been reported in some parts of the country Drivers and motorcycle taxi operators form long queues at a petrol station to purchase fuel Kenya has sharply raised the cost of petroleum, with diesel prices rising by a record margin despite a fuel tax cut, as the conflict in Iran pushes up global oil prices. In its latest review, the energy regulator raised the cost of diesel by 40 Kenya shillings to 206 ($1.6; £1.2) a litre, while petrol rose by 28 shillings to a similar level. It said this reflected higher global oil and shipping costs, even as the government cut value added tax to 13% from 16%. The new prices will last until 14 May when the next review is due. Fuel shortages have been reported in parts of the country, although the government insists stocks are sufficient and accuses some fuel companies of hoarding supplies. The reports of shortages have been overshadowed by controversy over an allegedly substandard consignment imported last month outside government-to-government arrangements and at a significantly higher cost. Reports that the fuel may have entered the market after being blended with stocks in government storage tanks have sparked public outrage and calls for accountability. The government has previously said it cancelled the consignment amid concerns over its quality and cost and barred oil marketers from selling it. The matter, which led to the arrest and resignation of senior energy officials, is still under investigation. On Wednesday, the Energy and Petroleum Regulatory Authority (Epra) said the disputed consignment had not been included in the computation of the new prices. The price rises come amid the global fuel crisis caused by the US-Israel war with Iran that began on 28 February. Concerns remain that the energy crisis may deepen despite a conditional two-week ceasefire signed last Wednesday that included opening the Strait of Hormuz, a key shipping route for global oil and gas supplies. Shipments through the strait have largely been at a standstill since the war began. Countries have taken various measures to cope with the crisis and cushion consumers from the price shocks, including cutting taxes and minimising wastage. Kenya's directive to cut VAT on fuel is scheduled to last until July. South Africa announced a one-month cut in the fuel levy two weeks ago to limit pump prices. Other African countries to have announced similar measures include Zambia, Namibia and Ghana, while South Sudan announced electricity rationing and Ethiopia prioritised certain sectors to deal with the crisis. A woman with long hair tied in a high pony tail, filling a dark green car with petrol at a petrol station in Nairobi, Kenya. She is standing to the side so her face is partially visible Rationing power and diluting petrol - how African countries are coping with effects of Iran war PODCAST: Kenya downplays fuel shortage fears amid Iran war Split image shows Michelle Fleury on the left in a red top and an IMF presentation on the right. IMF: Oil prices and war could derail global growth A split image shows Michelle Fleury on the left wearing a red top and a presentation on the right. Petrol attendant busy inserting the nozzle in the vehicle at a filling station Madagascar declares state of emergency over severe fuel shortages linked to Iran war A woman looking at her mobile phone and the graphic BBC News Africa Go to BBCAfrica.com for more news from the African continent. for more news from the African continent. Follow us on Twitter @BBCAfrica, on Facebook at BBC Africa or on Instagram at bbcafrica Becky Chaplain, an occupational therapist, is now helping burns patients in West Africa. Campbell Scott, 58, was found dead in a sack in Makongo Forest in February last year. Campbell Scott's body was found in a pineapple sack about 60 miles from Nairobi where he was attending a conference in February last year. The conflict, which erupted in 2023, has left behind a human toll which is "simply staggering", reports the BBC's Barbara Plett Usher. Roelf Meyer played a key role as a negotiator during talks to end white-minority rule in South Africa. A subdued economy makes trade-offs and choices over public spending more difficult, Chris Mason writes. The United Nations' secretary general said it was "highly probable" that the negotiations would restart. As the conflict enters its fourth year, journalist Mohamed Suleiman shudders at what has been lost.