CS Wandayi Reveals How Rogue Fuel Import Could Have Raised Prices by Ksh14 per Litre

Akoth
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Energy and Petroleum Cabinet Secretary Opiyo Wandayi has revealed that fuel prices could have risen by up to Ksh14 per litre if a consignment of super petrol imported outside the Government-to-Government fuel importation agreement had entered the Kenyan market.

In a statement issued on Tuesday, April 7, Wandayi disclosed that a 60,000-metric-tonne shipment of super petrol was recently brought into the country in contravention of established importation procedures. 

He said the consignment did not follow the agreed framework under the Government-to-Government arrangement, which is designed to stabilise fuel supply and prices.

According to the CS, the unauthorised shipment was significantly more expensive than fuel imported under the existing agreement.

He noted that the consignment was priced at Ksh198,000 per metric tonne, compared to Ksh140,000 per metric tonne under the Government-to-Government deal.

Wandayi explained that the Ksh58,000 difference per metric tonne would have had a direct impact on consumers if the cost had been passed on at the pump.

He warned that such a price variation could have resulted in a sharp increase in retail fuel prices, estimating that motorists would have paid up to Ksh14 more per litre.

The Cabinet Secretary emphasised that the Government-to-Government importation framework was established to cushion consumers from volatile global fuel prices and to ensure predictability in the local market.

He said any deviation from the arrangement undermines these objectives and exposes Kenyans to unnecessary price fluctuations.

He further indicated that authorities are closely monitoring fuel importation processes to ensure compliance with the set guidelines.

Wandayi reiterated that only shipments procured through the approved framework should be allowed into the market to maintain price stability and protect consumers.

The revelation comes amid heightened scrutiny of the fuel importation system, with concerns being raised about adherence to procedures and the potential impact on pump prices.

The CS maintained that strict enforcement of the Government-to-Government arrangement remains critical in safeguarding the gains made in stabilising the energy sector.

Wandayi also pointed out that unauthorised imports not only risk driving up costs but could also disrupt supply chain planning and coordination.

He stressed the importance of maintaining discipline in the sector to avoid market distortions that could adversely affect both consumers and industry players.

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