Energy Cabinet Secretary (CS) Davis Chirchir has indicated that fuel prices may go up to Ksh300 per litre.
Speaking during the National Dialogue Committee Proceedings at Bomas of Kenya on Monday, November 6, the CS stated that the increase was as a result of the ongoing conflict between Hamas and Israel.
Also, he warned that the changes may take effect in the next review done by the Energy and Petroleum Authority (EPRA) monthly.
Further, he indicated that the government was putting in place every possible measure to cushion Kenyans, however, much of the changes were beyond their control.
At the same time, he indicated that the increase in fuel prices was a global problem noting that it was perpetuated by the increase in dollar prices.
“I read an article in the financial time that because of the Hamas and Israeli war, the international prices could go up to 150 USD and that would literally mean our product going to a high of Ksh300 per litre.
“We hope it doesn’t get there. These are products that are real drivers of inflation and so we are working on it on a day-to-day basis to make sure that though it is a global challenge, we obtain the best pricing for our country,” he stated.
Also Read: EPRA Announces New Fuel Prices
CS Chirchir on Kenya’s Fuel Prices Affecting other Countries
The CS also indicated that it was important for Kenya to get the best deal on purchase of petroleum products because other East African Countries sources the products from Kenya.
In addition, he explained that countries including Uganda, Congo, South Sudan and other land locked countries, that used the port of Mombasa.
” We are not just managing for Kenya, we are trying to obtain the best as a gateway because of our port of Mombasa which services other land locked countries,” he added.
Also Read: Museveni Reveals How Kenyans Sold Uganda Expensive Fuel
Measures Kenya is taking to Cushion Kenyans
One of the ways Chirchir noted that the country was cushioning Kenyans from the impact of the global crisis was the implementation of the government-to-government oil deal which he noted saved up to Ksh75.6 billion every month.
“In spite of the fact that it is still tight, if we did not do the government-to-government deal. the situation would have been really dire today. We could have been at Ksh200 plus.
“The deal has enabled us to slow down the exiting of Ksh75.6 billion (USD 500 million) every month from petroleum,” noted Chirchir.
On the other hand, the energy CS revealed that the government was keeping aside some US dollars in billions to repay the purchased petroleum products.
“We are removing the dollars as they mature. We are sitting on some USD1.2 billion to support the repayment of the products as they mature on the age of six months.
