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Government eyes petroleum levy to cushion against fuel price hikes

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NTV Kenya (Youtube)
March 5, 2026
1mo ago
The government has mooted the use of the petroleum development levy to ramp up a fuel subsidy in case the Middle East unrest lingers. However, it expressed confidence in the government-to-government arrangement to sustain supply. Subscribe to NTV Kenya channel for latest Kenyan

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Hundreds of Kenyans have been repatriated to Kenya after being stranded in the United Arab Emirates due to escalating Iran-related war tensions. The evacuation comes as an airstrike reportedly struck a children's playground and emergency building in Shiraz, Iran, causing 20 deaths and 30 injuries. Simultaneously, the Kenyan government is considering utilizing the petroleum development levy to fund a potential fuel subsidy if Middle East unrest continues to impact global prices. The escalating tensions in the Middle East are significantly impacting the Nairobi Securities Exchange, causing a substantial drop in its market valuation. Kenya faces significant economic risks if the conflict between the United States and Iran escalates, with a primary concern being a potential surge in oil prices.

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