Global oil prices have risen sharply due to tensions between the United States and Iran, raising concerns for Kenyan consumers ahead of the next pump price review.
Brent crude, a key benchmark for Kenya's petroleum imports, climbed more than 3 per cent this week to above KSh9,823 (USD76) a barrel. The increase followed U.S. military strikes on Iran after Washington accused Tehran of attacks on commercial vessels in the Strait of Hormuz.
U.S. Central Command confirmed the strikes. Iran has not claimed responsibility for the vessel attacks. The United States also cancelled a waiver on limited Iranian oil sales, which Iran's deputy foreign minister Vahid Jalalzadeh called a breach of last month's agreement.
Energy experts warn that supply disruptions through the Strait of Hormuz could last for months. The Energy and Petroleum Regulatory Authority is scheduled to review pump prices on July 14.
Kenya relies on imported crude. The government has directed EPRA to cut diesel prices by KSh10 per litre in Nairobi, bringing them to roughly KSh222.86. It spent over KSh28.2 billion on fuel subsidies between April and May and reduced VAT on petroleum products from 16 per cent to 8 per cent.
