The rising fuel prices are likely to test the inflation sweet spot or the government’s midpoint target of five percent according to analysts who see a larger impact from the high cost of petroleum products if sustained.
The observation comes against the backdrop of a disclosure by the Ministry of Energy that the State has depleted the subsidy fund used to stabilise retail fuel prices, which exposes consumers to volatile global shifts that have seen the cost of diesel and petrol jump by at least Sh8.67 per litre in Kenya.
