This deal, established with Saudi Arabia, allowed the government to import fuel on credit, reducing pressure on the Kenyan Shilling and stabilizing fuel prices.
Previously, Kenya paid upfront for fuel imports, but the current agreement enabled delayed payments, helping to manage the country’s strained foreign currency reserves.
Energy Cabinet Secretary Opiyo Wandayi assured Kenyans that measures are being taken to prevent disruptions in fuel supply.
Wandayi revealed that the government has initiated high-level discussions to address the impending issue. An interministerial conference, led by Treasury Minister John Mbadi, is set to deliberate on the matter and issue a joint statement outlining the next steps.
The importation deal has been credited with stabilizing fuel prices in Kenya. Since its inception, the landing cost of fuel has been lower, offering Kenyans some relief at the pump.
Current prices, according to the Energy and Petroleum Regulatory Authority (EPRA), stand at Ksh176.29 for petrol, Ksh165.06 for diesel, and Ksh148.39 for kerosene.
Despite the impending expiry of the agreement, Wandayi emphasized that the government is proud of the deal’s success in reducing fuel prices.
However, concerns remain as the government has yet to finalize a new agreement to replace the existing one.
The Ministry of Energy remains optimistic, with Wandayi assuring the public that efforts are in progress to secure a solution before the current deal lapses.
The interministerial conference’s outcomes will play a significant role in shaping the next steps for the petroleum sector.
The fuel importation agreement has been a significant milestone in easing economic pressures on Kenyans. It provided relief to households and businesses affected by fluctuating fuel prices and the weakening shilling.
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