Global Fuel Prices Skyrocket as Middle East Conflict Disrupts Supply Drivers around the world are facing record-breaking fuel price hikes as conflict in the Middle East disrupts global oil supplies, overwhelming government efforts to provide relief through tax cuts. In Kenya, the price of diesel has risen more than any single time in the country's recorded history, despite a recent government cut to the value-added tax (VAT) on fuel from 16% to 8% [129633][129374]. The tax reduction has been canceled out by soaring global oil costs linked to increased tensions in the Middle East, specifically the conflict involving Iran and Israel [129374]. The surge will directly raise the cost of transportation and electricity, pushing the prices of basic goods higher [129633]. South African drivers rushed to gas stations ahead of a historic price increase, despite authorities reducing the general fuel levy by 3 rand per litre to soften the blow [117884][117581]. The relief was overwhelmed by international pressure, resulting in one of the steepest increases in pump prices the country has ever recorded [117581]. The hike is triggering immediate secondary effects, with security companies, water suppliers, and taxi associations adding emergency surcharges or warning of imminent fare increases [118106]. The crisis stems from direct attacks on energy infrastructure and closed shipping routes. A drone strike that set a Kuwaiti oil tanker on fire off the coast of the United Arab Emirates sent global oil prices surging past $115 per barrel [116225]. Furthermore, the key Strait of Hormuz shipping route remains closed, creating a major supply chain bottleneck that keeps pump prices high even when crude oil prices steady [116592]. Governments are scrambling to respond. Germany announced emergency measures, including a 17-cent-per-litre cut to fuel taxes, to shield citizens from war-driven inflation [128123]. However, these interventions are struggling to keep pace with the market shock. Analysts warn that with the stability of Middle East ceasefires in doubt, significant price relief for consumers is not expected in the near future [124783]. Kenya Fuel Prices Skyrocket, Hit Record High Despite Tax Cut Fuel Prices Soar in Kenya, Despite Tax Cut South Africa Braces for Record Fuel Price Surge South Africa Cuts Fuel Tax, But Drivers Still Hit by Record Price Hike Fuel Shockwave: Water, Security Prices Surge After Diesel Spike Drone Attack on Tanker Sends Oil Soaring Past $115 Oil Prices Steady, So Why Is Petrol So Expensive? Germany Cuts Fuel Tax, Offers Worker Bonus to Counter War-Driven Inflation Fuel Prices Climb as Gaza Ceasefire Hopes Fade

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