Kenya extends fuel tax cut for three more months

NAIROBI: 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.