The Kenyan government has raised concerns over potential fuel price increases next month due to ongoing disruptions in the Red Sea and Middle East tensions affecting global oil supplies.
The Ministry of Foreign Affairs highlighted growing security threats in the Middle East that have led to the closure of the Strait of Hormuz and the Red Sea. On July 20, Yemen’s Iran-aligned Houthi rebels announced a naval blockade targeting Saudi-linked shipping in the Red Sea, threatening the Bab al-Mandeb Strait. These developments follow months of instability around major shipping routes.
Principal Cabinet Secretary Musalia Mudavadi stated that the attacks could worsen supply chain disruptions for oil and fertiliser, driving up maritime insurance and freight costs. The government is relying on its government-to-government fuel import deal with Saudi Arabia to protect Kenyans from price shocks.
Fuel prices are calculated using averages of landing costs up to the 10th of each month. In the current cycle from June 14 to August 14, the Energy and Petroleum Regulatory Authority retained May prices, with Super Petrol at KSh214.03 per litre, Diesel at KSh222.86 per litre and Kerosene at KSh191.38 per litre in Nairobi. Brent crude has risen roughly 10-13 per cent this week to around $97-$100 per barrel.
