Kenya has sharply raised the cost of petroleum, with diesel prices rising by a record margin despite a fuel tax cut, as the conflict in Iran pushes up global oil prices. In its latest review, the energy regulator raised the cost of diesel by 40 Kenya shillings to 206 ($1.6; £1.2) a litre, while petrol rose by 28 shillings to a similar level. It said this reflected higher global oil and shipping costs, even as the government cut value-added tax to 13% from 16%. The new prices will last until 14 May when the next review is due. Fuel shortages have been reported in parts of the country, although the government insists stocks are sufficient and accuses some fuel companies of hoarding supplies. These reports of shortages have been overshadowed by controversy over an allegedly substandard consignment imported last month outside government-to-government arrangements and at a significantly higher cost. Recent claims suggest that the fuel may have entered the market after being blended with stocks in government storage, sparking public outrage and calls for accountability. The government has previously stated it canceled the consignment amid concerns over quality and cost and barred oil marketers from selling it, resulting in the arrest and resignation of senior energy officials. The Energy and Petroleum Regulatory Authority (Epra) said the disputed consignment had not been included in the computation of the new prices. The price rises come amid the global fuel crisis caused by the US-Israel war with Iran that began on 28 February, with fears that the energy crisis may deepen despite a conditional two-week ceasefire signed last Wednesday, which included opening the Strait of Hormuz, a crucial shipping route for global oil and gas supplies. Shipments through the Strait have largely been at a standstill since the war began. Other African countries facing similar challenges have implemented various measures to manage the crisis, including cutting taxes and minimizing wastage. Kenya’s directive to cut VAT on fuel is scheduled to last until July, while South Africa recently announced a one-month cut in fuel levies. Other nations such as Zambia, Namibia, and Ghana have also introduced similar support to mitigate the impacts of rising fuel costs.