Kenyans may have to wait a little longer for a major drop in fuel prices, with Energy and Petroleum Cabinet Secretary Opiyo Wandayi warning that the situation in the global oil market remains uncertain.
Wandayi said on Wednesday that the ongoing situation in the Middle East was continuing to affect petroleum prices, making it difficult to predict how the next fuel price review would turn out.
He was speaking in Nairobi during a meeting with tuk-tuk operators, just days before the Energy and Petroleum Regulatory Authority (EPRA) is expected to announce new fuel prices.
“We shall continue to work with all the stakeholders, even as we contend with the fact that the situation at the global stage remains very fluid,” Wandayi said.
EPRA is expected to announce the new prices on September 14, with the changes taking effect from September 15 and running until October 14.
The review will determine the prices of Super Petrol, diesel and kerosene for the next month.
Wandayi said the government was taking steps to keep fuel available and limit the impact of rising global prices on consumers.
He pointed to the reduction of Value Added Tax (VAT) on petroleum products from 16 per cent to eight per cent as one of the measures already taken.
The government has also been using money from the Petroleum Development Levy to subsidise fuel, according to the CS.
Wandayi said the measures had helped cushion consumers from the effects of the crisis in the Middle East.
“Even as we transition to e-mobility, we recognise that it is a journey,” he said, adding that petroleum products would remain important to Kenya’s transport and energy sectors for the time being.
The warning comes as tensions in the Middle East continue to raise concerns over global oil supplies.
The Strait of Hormuz, which is an important route for international oil shipments, remains a key concern because any disruption along the route could affect supplies and push global prices higher.
For Kenyan motorists and businesses, the EPRA announcement on September 14 will determine whether pump prices come down, remain at the current levels or rise further.
