Gov’t Expresses Worry Over Fuel Price Hike amidst Middle East Conflict

Kenya has voiced its concerns over the potential rise in global oil prices as the war between Israel and Iran escalates in the Middle East. Prime Cabinet Secretary and Minister for Foreign and Diaspora Affairs Musalia Mudavadi highlighted the economic impact the conflict could have on East African countries.

PRIME CS MUSALIA MUDAVADI, PHOTO COURTESY BY GOOGLE

Highlights:

Kenya expresses worry about the impact of the Middle East war on global oil prices.
Mudavadi calls for restraint from all parties involved in the conflict.
The government urges Kenyans in affected regions to register for evacuation.

Rising Oil Prices: A Growing Concern

Prime CS Musalia Mudavadi acknowledged that Kenya is closely monitoring the developments in the Middle East, particularly how they might affect oil prices and the broader economy. “Kenya is also concerned about the detrimental effect that these developments will have on global oil prices and the economies of countries in the East African region,” Mudavadi said.

His comments come as the conflict in the Middle East, which began with an attack by Hamas on Israel, continues to escalate. Iran recently launched missile strikes targeting various sites in Israel, prompting Israel to respond with ground raids into Lebanon and retaliatory fire against Hezbollah. These tensions have raised fears of disruption in oil supply chains, which could lead to an increase in fuel prices globally, including in Kenya.

The Impact of Rising Oil Prices

Last year, Kenya faced a sharp rise in fuel prices, largely due to the ongoing Russia-Ukraine conflict. President William Ruto had previously cited this geopolitical instability as a key factor driving up the cost of fuel, alongside the economic fallout from the COVID-19 pandemic. In Kenya’s latest fuel review, the Energy Petroleum Regulatory Authority (EPRA) maintained prices, with super petrol retailing at Ksh188.84, diesel at Ksh171.60, and kerosene at Ksh161.70.

Concerns for Kenyans in the Diaspora

Mudavadi also expressed worry for Kenyans living in Israel, Iran, Lebanon, and other Middle Eastern nations, emphasizing that their safety is a top priority. The Ministry of Foreign Affairs has advised all Kenyans in the region to register for evacuation through Kenyan diplomatic missions or diaspora hotlines. “Kenya’s concerns at this time are, first and foremost, with the Kenyan diaspora in Israel, Iran, Lebanon, and across the Middle East,” the Prime CS noted.

Kenya’s Call for Restraint

In light of the ongoing conflict, Kenya has called on all involved parties to exercise restraint to prevent further escalation. “Amid escalating tensions in the region, Kenya calls on all parties and their supporters to exercise the highest restraint towards the prevention of escalation of the conflict,” read the statement.

Background: Oil Prices and Conflicts

Global oil prices are often sensitive to geopolitical tensions, especially in regions like the Middle East, which holds significant oil reserves. The Israel-Iran war could lead to supply disruptions, creating uncertainty in the market. Historically, such conflicts have had a ripple effect, influencing prices worldwide, especially in oil-dependent nations like Kenya. With the region’s escalating tensions, many countries are bracing for potential economic fallout.