Government Defends Fuel Price Measures Amid Global Oil Crisis
Oil and gas prices rise on new Iran threat to Gulf shipping
The Government announced a series of interventions aimed at cushioning Kenyans from rising fuel prices triggered by the ongoing US-Israel-Iran conflict, which has disrupted global oil supply chains.
Deputy President Kithure Kindiki said the closure of the Strait of Hormuz had significantly affected global shipping, forcing vessels to take longer routes while insurance costs for cargo surged sharply.
According to Kindiki, the crisis has pushed up international fuel prices, with officials warning that pump prices in Kenya could have risen to as high as Sh300 per litre without intervention measures.
Prof Kindiki said the Government had already reduced Value Added Tax (VAT) on fuel from 16 per cent to 8 per cent and injected Sh12 billion from the fuel stabilization fund to help moderate pump prices.
He added that President William Ruto had directed an inter-ministerial team comprising Cabinet Secretaries responsible for the National Treasury, Energy, Transport and Interior to engage stakeholders and recommend additional measures to stabilize the transport sector and restore normalcy.
The statement comes amid growing public concern over the cost of fuel and transport, with reports of demonstrations and disruptions in some areas.
While affirming citizens’ constitutional right to protest, the Government warned against criminal activities during demonstrations.
“Criminal acts of arson, obstruction of traffic, looting of property and robbery of motorists and other innocent members of the public cannot be tolerated and will be severely punished,” the statement said.
The Government appealed to Kenyans to remain calm and patient as authorities explore further interventions to shield the economy from the effects of the global oil crisis, which officials described as being beyond Kenya’s control.
Transport players went on strike on Monday paralyzing operations at large. At least two people were killed in the chaos. Property of unknown value was destroyed in the strike.