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Originally published by The Standardtop
April 16, 2026
5h ago
Fuel subsidy won't survive prolonged Iran war, expert warns

Kenyans could pay more for fuel if tensions in the Middle East persist, threatening to drain the country's Petroleum Development Levy (PDL) Fund...
✨ Key Highlights
Kenyans may face higher fuel prices if the ongoing Middle East tensions persist, as the country's Petroleum Development Levy (PDL) Fund is reportedly under severe strain.
- The fund is currently subsidizing fuel at Sh22 per litre, far exceeding the Sh5.40 levy collected, creating an unsustainable deficit.
- Dr. Patrick Obath, an oil and gas consultant, warned that the fund received only Sh25 billion of a projected Sh55 billion, suggesting a potential diversion of funds.
- While the government temporarily reduced Value Added Tax on fuel and withdrew Sh6.2 billion from the PDL fund, these measures are temporary, and experts advise looking beyond subsidies.
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