Strait of Hormuz Crisis Triggers Fuel Price Hike Risk in Kenya

Kenyan motorists and businesses are facing a fresh risk of higher fuel prices due to disruptions around the Strait of Hormuz, which has tightened global oil supplies and pushed up refined petroleum costs.

The latest oil markets report shows that global observed oil stocks plummeted by 69 million barrels in July, with inventories falling by 410 million barrels since the start of the war.

Kenya imports all its petroleum products in refined form, with prices linked to international markets. The Energy and Petroleum Regulatory Authority (EPRA) says international petroleum prices, exchange rates, and other costs form part of the pricing structure used in determining local pump prices.

The Strait of Hormuz has been a major concern for oil supply chains, with 8.3 million barrels per day of Gulf production remaining shut in due to renewed hostilities and maritime disruptions.