Energy Cabinet Secretary Opiyo Wandayi has defended the government’s fuel pricing and importation strategy, arguing that motorists would be paying significantly more for fuel were it not for state interventions aimed at cushioning consumers from global market shocks.
Speaking during a radio interview on Friday, Wandayi said international oil prices remain under pressure due to geopolitical tensions and conflicts that continue to disrupt global energy markets, pushing up the cost of crude oil and transportation.
According to the CS, the price of fuel in Kenya is influenced by several factors, including the international purchase price, freight charges, insurance costs and trader margins, commonly referred to as premiums.
“Fuel pricing is determined by several components. The international purchase price is one of them, and currently global market conditions have pushed those costs higher,” Wandayi said.
He noted that ongoing geopolitical tensions, particularly conflicts affecting major oil-producing regions, have contributed to elevated global fuel prices.
G2G Framework Stabilising Costs
Wandayi said the Government-to-Government (G2G) fuel import arrangement has helped Kenya maintain more stable fuel prices by locking in some costs that would otherwise fluctuate with international market conditions.
Under the framework, freight and premium charges remain fixed, shielding consumers from sudden spikes in fuel importation costs.
“Within the G2G framework, freight and premium costs are fixed and do not fluctuate with every market shock,” he explained.
The CS said freight and premium charges currently stand at approximately USD 78 per tonne for diesel, USD 84 per tonne for petrol and USD 97 per tonne for jet fuel.
According to Wandayi, these rates have remained stable despite recent volatility in the global oil market.
Cushioning Consumers Against Global Shocks
The Energy CS maintained that without government intervention, fuel prices in Kenya would be considerably higher, resulting in increased transport costs and a higher cost of living.
“If we did not have the G2G arrangement in place, the situation would be very different. Consumers would be facing much higher fuel prices,” he said.
He added that the government’s fuel management strategy has helped reduce exposure to unpredictable international market movements while ensuring a steady supply of petroleum products.
Wandayi argued that fuel prices have a direct impact on the broader economy because they influence transportation, food distribution, manufacturing costs and the prices of essential goods and services.
Commitment to Stable Fuel Supply
The CS reiterated that the government remains focused on maintaining a reliable fuel supply and ensuring predictable pricing despite continued uncertainty in global energy markets.
He said the current framework has strengthened Kenya’s ability to absorb external shocks while protecting households and businesses from severe inflationary pressure.
“The objective is to guarantee stable supply and predictable pricing while minimizing the impact of global market disruptions on Kenyan consumers,” Wandayi said.
As global oil markets continue to experience fluctuations, the government says it will continue monitoring developments and implementing measures aimed at protecting consumers and supporting economic stability.
