Kenyan President William Ruto today announced plans to cut oil prices in the next fuel pricing cycle, following deadly protests and a national transport strike sparked by rising fuel costs linked to Middle East tensions, Anadolu reports.

Protests and transport disruptions left at least four dead and dozens injured earlier this week, as anger grew over the cost growing livelihoods in the East African country.

Speaking during a live address from State House in the coastal city of Mombasa, Ruto said the government will reduce the price of oil by 10 Kenyan shillings ($0.077) per liter starting from the June-July cycle to ease the burden on consumers and the transport sector. oil by another 10 shillings for the June/July cycle to help stabilize pump prices and provide additional relief to consumers,” Ruto said.

He blamed the fuel crisis on disruptions in global energy markets linked to rising tensions involving Iran and instability in the Strait of Hormuz, one of the world’s most important oil shipping routes.

According to Ruto, international oil prices have risen. by 118 percent since the end of February, sharply increasing costs for countries dependent on fuel imports. Kenya imports almost all of its oil products from the Gulf region.

Ruto defended the government’s intervention measures, saying authorities spent 28.19 billion Kenyan shillings (about $217.2 million) during the April-May and May-June price cycles through fuel subsidies and tax breaks to protect households and businesses from the impact of higher prices.

He said the government cut Value Added Tax (VAT) on petroleum products from 16 percent to 8 percent, a move that cost the exchequer 14.4 billion shillings (about $110.9 million) in lost revenue. Without government intervention, the price of oil in Kenya would currently retail at around 277.75 shillings ($2.14) per litre, instead of the current price of 232.86 shillings ($1.79), according to the president.

Ruto defended the government-to-government agreement on fuel imports, introduced in 2023, arguing that it has stabilized fuel supplies. and has eased pressure on the Kenyan shilling during the ongoing energy crisis.

“Through the Government-to-Government (G2G) fuel supply framework, we have ensured guaranteed fuel supplies despite disruptions in global supply chains, ensuring uninterrupted availability of fuel across the country,” he said.

Fuel protests caused major disruptions this week, with matatu operators, minibuses private companies that form the backbone of Kenya’s transport system suspended services across the country due to rising oil prices.

Source: prizrenpost