Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended the latest fuel price increase, blaming instability in the global oil market and rising supply chain costs linked to tensions in the Middle East.
Speaking on Friday, hours after the new pump prices took effect, Wandayi said the government had already introduced measures to protect consumers from the full impact of the sharp increase.
The recent review saw the cost of super petrol increase by Sh16.65 per litre and diesel increased by Sh46.29. The prices of kerosene remained constant.
The price increase has already generated anxiety among motorists, matatu owners and average citizens due to the belief that the cost of travel and basic goods would increase further as a result of the higher fuel expenses.
According to Wandayi, the prevailing circumstances were mainly caused by international variables that are not within the country’s jurisdiction.
“The geopolitical instability in the area has severely impacted global energy markets, which resulted in a dramatic increase in global crude oil prices and high freight rates,” he explained.
The CS stated that Kenya’s exposure to such disturbances was a reality because all petroleum products are imported into the nation.
The minister explained that the landed price of imported super petrol climbed by almost 10 per cent from March to April, while diesel prices increased by more than 20 per cent during the same period.
However, despite the increase, the minister indicated that the government had taken measures to protect consumers, particularly low-income families that use kerosene for cooking and illumination purposes.
He admitted that the government spent Sh5 billion in the recent pricing cycle to ensure that the increase in the price of diesel and kerosene did not become too costly.
In addition to that, Wandayi added that the government already interfered with the pricing process as it lowered the VAT rates of petroleum products from 16 percent to 8 percent.
Moreover, he emphasized that due to the agreement on importing fuel between Kenya and Somalia, Kenya will avoid paying additional money for importing fuel to Kenya.
Besides, CS added that the situation with fuel stocks in the country is absolutely favorable, thus there is nothing to worry about.
According to the CS, the ministry discusses the matter with representatives of such sectors as transport, manufacturing, energy, and business.