Kenya's government said on Tuesday it was extending a reduction in Value Added Tax (VAT) on petroleum products for another three months to mid-October to cushion households and businesses from volatility in global energy prices.

The East African country in April cut VAT on petroleum products from 16% to 8% for three months, after crude oil prices surged because of the United States-Israeli war against Iran.

In a statement on Tuesday, Energy and Petroleum Minister Opiyo Wandayi said the government would also deploy a subsidy to the tune of 945 million shillings ($7.31 million) to sustain current price levels in the July-August fuel pricing cycle.

Wandayi sought to reassure Kenyans that fuel was readily available despite renewed hostilities between the US and Iran.

Kenya typically imports nearly ​all of ⁠its fuel products from the Middle East via government-to-government deals.