Energy and Petroleum Cabinet Secretary Opiyo Wandayi has defended the government’s approach to fuel pricing, arguing that Kenya would face significantly higher petroleum costs without state interventions.
The CS emphasized that targeted measures such as government-to-government fuel importation and price stabilization subsidies have protected consumers from escalating global prices.
During a recent radio interview, Wandayi reiterated the administration’s commitment to reducing the cost of living through strategic energy sector interventions. He confirmed the upcoming Sh10 per litre diesel price reduction as directed by President William Ruto, expressing hope that improving global market conditions will alleviate pressure on fuel and electricity prices.
When questioned about Kenya’s relatively high fuel prices compared to neighboring countries, Wandayi noted that the country has avoided fuel shortages despite global conflicts. He explained that Kenya’s fuel is entirely imported, with prices subject to market forces. He highlighted that the G2G framework has fixed freight and premium components at $78 per tonne for diesel, $84 for petrol, and $97 for jet fuel, contrasting sharply with global market rates approaching $300 per tonne.
Regarding the planned diesel reduction, Wandayi stated his duty is to implement government directives, confirming the Sh10 decrease will take effect on June 14.
On fare adjustments following fuel price changes, Wandayi called on transport operators to reduce fares proportionally when fuel costs decline. He noted the discrepancy between fuel price reductions and corresponding fare decreases, expressing that this inequity should be addressed.
The CS explained that Kenya’s regulated fuel pricing system, supported by the Petroleum Development Levy, protects consumers from market volatility. He revealed that Sh6.2 billion was spent during the April-May cycle and Sh7.7 billion during May-June to stabilize prices, in addition to a 50 percent VAT reduction on fuel.
Wandayi clarified that without government intervention, Kenyans would be paying approximately Sh272 per litre for fuel. He attributed global supply challenges to refinery disruptions and noted that declining winter consumption in the Northern Hemisphere could lead to price reductions.
Regarding claims of substandard fuel imports, Wandayi acknowledged an investigation is underway, confirming that some fuel was imported outside the G2G framework. He emphasized immediate action was taken upon detection of the issue.
On the Turkana oil project, Wandayi stated it represents a major investment with significant potential. He mentioned that Gulf Energy has acquired Tullow Oil’s interests and that the Field Development Plan has been approved by Parliament. The CS expressed confidence that oil production will commence before year-end, with eventual plans for local refining.
Regarding high electricity costs, Wandayi announced the suspension of proposed fuel cost charge increases to protect consumers. He highlighted transmission and distribution losses as key challenges, while noting expanded electricity generation capacity through new strategies. The CS expressed optimism that operational improvements will maintain stable electricity prices.
Wandayi concluded by emphasizing the government’s role in creating a favorable environment for fuel imports and protecting consumers from overpricing, anticipating that improving international conditions will translate to lower local fuel prices and reduced cost of living pressures.