Kenya’s government said on Tuesday it was extending a reduction in Value Added Tax (VAT) on petroleum products for another three months to mid-October to cushion households and businesses from volatility in global energy prices.
The East African country in April cut VAT on petroleum products from 16% to 8% for three months, after crude oil prices surged because of the U.S.-Israeli war against Iran.
In a statement on Tuesday, Energy and Petroleum Minister Opiyo Wandayi said the government would also deploy a subsidy to the tune of 945 million shillings ($7.31 million) to sustain current price levels in the July-August fuel pricing cycle.
Wandayi sought to reassure Kenyans that fuel was readily available despite renewed hostilities between the U.S. and Iran.
Kenya typically imports nearly all of its fuel products from the Middle East via government-to-government deals.
In May, transport operators went on strike over fuel price hikes.
