According to data from the AAA, the national average price for regular gasoline has risen to $4.02 per gallon, marking a sharp increase of more than a dollar since the conflict began in late February.
Diesel prices have also climbed steeply, rising by about Ksh221 ($1.70) per gallon over the same period.
Analysts attribute the spike primarily to disruptions in global oil supply chains, particularly around the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of the world’s oil supply passes.
Analysts attribute the spike primarily to disruptions in global oil supply chains, particularly around the Strait of Hormuz, a critical maritime corridor through which roughly one-fifth of the world’s oil supply passes.
The effective closure of the strait for several weeks has significantly slowed the movement of crude oil from the Middle East to global markets.
As a result, crude oil prices—an essential component in the production of gasoline and diesel—have surged, pushing up fuel costs not only in the US but across international markets.
Before the conflict erupted on February 28, the average price of gasoline in the US stood at about Ksh388 ($2.98) per gallon, while diesel averaged Ksh490 ($3.76).
As a result, crude oil prices—an essential component in the production of gasoline and diesel—have surged, pushing up fuel costs not only in the US but across international markets.
Before the conflict erupted on February 28, the average price of gasoline in the US stood at about Ksh388 ($2.98) per gallon, while diesel averaged Ksh490 ($3.76).
Diesel prices have now jumped to approximately Ksh709 ($5.45), highlighting the scale of the increase and its potential impact on transport and logistics sectors.
Despite the recent surge, current fuel prices remain below the historic highs recorded in June 2022, when gasoline reached $5.01 per gallon and diesel peaked at $5.81 in the aftermath of the Russian invasion of Ukraine.
In addition to supply constraints, seasonal demand has also contributed to rising prices. The AAA noted that increased travel during the spring break period has placed additional pressure on fuel markets, further driving up costs at the pump.
The effects of rising energy prices are being felt globally. In the United Kingdom, petrol prices have increased by 14 percent, while diesel has jumped by 27 percent since the onset of the conflict. Governments in several countries have begun implementing measures to cushion consumers from the impact.
For instance, Sri Lanka and Bangladesh have introduced fuel rationing to manage limited supplies, while Slovenia has become the first European Union country to adopt similar restrictions.
Despite the recent surge, current fuel prices remain below the historic highs recorded in June 2022, when gasoline reached $5.01 per gallon and diesel peaked at $5.81 in the aftermath of the Russian invasion of Ukraine.
In addition to supply constraints, seasonal demand has also contributed to rising prices. The AAA noted that increased travel during the spring break period has placed additional pressure on fuel markets, further driving up costs at the pump.
The effects of rising energy prices are being felt globally. In the United Kingdom, petrol prices have increased by 14 percent, while diesel has jumped by 27 percent since the onset of the conflict. Governments in several countries have begun implementing measures to cushion consumers from the impact.
For instance, Sri Lanka and Bangladesh have introduced fuel rationing to manage limited supplies, while Slovenia has become the first European Union country to adopt similar restrictions.
In Australia, authorities have temporarily halved fuel taxes and introduced free public transport in some regions to reduce reliance on private vehicles.
Economists warn that sustained high fuel prices could have broader economic implications, including increased inflation and higher costs of goods and services due to elevated transportation expenses.
Economists warn that sustained high fuel prices could have broader economic implications, including increased inflation and higher costs of goods and services due to elevated transportation expenses.
0 Comments