Saudi oil cuts leave East Africa in season of high fuel prices

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Motorists waiting to fuel at Shell Ngong Road Nairobi, Kenya on April 12, 2022. PHOTO | DENNIS ONSONGO | NMG

East African economies are facing a sustained period of high fuel prices after Saudi Arabia, the world’s largest oil exporter, announced a decision to extend its voluntary oil output cut of one million barrels per day (bpd) to September, the third consecutive month of such cuts, with the possibility of further extensions.

The latest global oil dynamics coupled with the depreciation of local currencies have put Kenya’s fresh fuel stabilisation programme to a litmus test.