The average price for 95 octane unleaded petrol in the US has increased by more than 40 percent since February. The spike comes as the US-Israeli war on Iran has disrupted oil exports through the Strait of Hormuz. Before the conflict, gasoline prices averaged about 87 US cents per litre.

By the end of April, diesel prices in the US stood at 196.11 cents per litre. In Australia, the average price for a litre of unleaded petrol is 185.4 cents, reflecting a reduction due to the federal government’s halving of the fuel excise. Diesel prices there have decreased from a peak of 328.4 cents to 260 cents.

The inflation rate in Australia rose to 4.6 percent in March, partly due to automotive fuel prices. Experts suggest that tight supply is affecting even major exporters like Australia.

Expert opinions:

• Ben Fahimnia noted that many cities have recently experienced a downward phase, allowing pump prices to fall despite rising upstream costs.
• Peter Robertson explained that the US was less reliant on oil imports, which prevented significant price spikes compared to Australia.
• Lurion De Mello warned that tight supply is putting pressure on fuel prices globally.

The situation remains fluid as officials monitor developments. Prices are likely to increase in June when the fuel excise cut expires and the closure of the Strait of Hormuz continues.

The post Petrol appeared first on newskenya.

The anticipated price hike comes on the heels of a significant increase in fuel prices in neighboring Tanzania, which recently raised its prices by more than 30 percent. This regional shift adds pressure on Kenya, which lacks strategic fuel reserves and relies heavily on continuous imports to meet its energy needs. Chomba emphasized the vulnerability of the supply chain, stating, “We do not have reserves. Today, we would have a big crisis if no ship docked at the Port of Mombasa.”

Smaller, rural fuel retailers, who account for a substantial portion of the country’s fuel supply, are reporting limited access to fuel. Approximately 68 percent of fuelling points in Kenya are operated by these smaller retailers, who provide 40-45 percent of the country’s throughput of petroleum. The challenges faced by these retailers could exacerbate the situation as prices rise.

As the Energy and Petroleum Regulatory Authority (EPRA) prepares to announce new fuel prices, the backdrop of a controversial fuel shipment continues to loom large. This scandal has led to the arrest and resignation of senior officials within the Ministry of Energy, further complicating the public’s trust in the energy sector. The ongoing investigations into this fuel deal have sparked public outrage and intensified scrutiny of procurement processes within Kenya’s energy sector.

Details remain unconfirmed regarding the exact impact of global oil market volatility on local prices. However, the upcoming EPRA announcement is expected to provide clarity on the new pricing structure. The situation remains fluid, and stakeholders are closely monitoring developments.

Isaac Mwaura, a government official, attempted to reassure the public, stating, “There is no cause for alarm as we are dealing with the situation as it is as a government.” Yet, with the potential for significant price increases and ongoing supply chain issues, many Kenyans remain apprehensive about the future of fuel availability and affordability.

As the April 14 announcement approaches, the implications of these changes will likely resonate throughout the economy, affecting transportation costs and the prices of goods and services across the board. The government and relevant authorities are under pressure to address these challenges effectively to mitigate the impact on consumers.

The post Fuel Prices in Kenya Set to Rise Amid Ongoing Controversy appeared first on newskenya.