Energy and Petroleum Cabinet Secretary Opiyo Wandayi on Wednesday gave insight into factors affecting fuel prices, revealing that the government is working towards addressing inefficiencies in a bid to drive pump prices downwards.....CLICK HERE TO READ THE FULL ARTICLE>>>
Speaking during a tour of the Kenya Pipeline Corporation (KPC) headquarters, the CS listed the landing cost, taxation regime as well as transport and storage costs as the main elements that determine how oil marketers price the component.
The landing cost of fuel refers to the price at which the product arrives at the Port of Mombasa. The CS, while breaking down the issue to journalists reiterated that the government has very little control on this particular cost. He therefore proceeded to stress that the government must find alternative ways of reducing pump prices.
“It depends on so many other factors out there,” he stated.
Wandayi therefore revealed that his tour to Kenya Pipeline headquarters was specifically geared at addressing ways the government can become more efficient. The CS hinted this was the best strategy to apply since projections show it will have a very direct impact on the prices of fuel products.
The CS hinted that the government is eyeing external markets with the view of leveraging Kenya’s expansive energy infrastructure to generate revenues from underutilised resources.
“Uganda despite disengaging from the G-to-G arrangement continues to import its fuel and pass its fuel through our pipeline. Actually Kenya Pipeline Company (KPC) continues to handle Uganda’s petroleum products up to date,” he stated.
In the most recent review conducted by the Energy Petroleum Regulatory Authority (EPRA), fuel prices remained unchanged .
The review will apply for the period running from August 15 to September 14. Kerosene will retail at Ksh161.75, Super Petrol at Ksh188.84 and Diesel at Ksh171.60 in Nairobi.
“In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, we have calculated the maximum retail prices of petroleum products, which will be in force from August 15, 2024, to September 14, 2024,” EPRA said in a statement.
However, Kenyans across the board continue to complain that fuel prices are still high, affecting production in all sectors of the economy, which has a ripple effect on the prices of goods and services.
Immediately after taking over the Energy and Petroleum docket from his predecessor Davis Chirchir, one of the promises that the new appointee made was to reduce the cost of power and fuel.
“ I’m sure in the fullness of time we will, the cost of electricity will be bearable, and we must also understand that the cost of electricity and petroleum products is contributed by very many factors,” Wandayi said speaking from Kawi House…CONTINUE READING>>
