Why Fuel Prices Could Rise To Ksh300- Energy CS Chirchir

Energy Cabinet Secretary (CS) Davies Chirchir has told the National Dialogue Committee (NADCO) that the Israel-Hamas war could risk pushing up fuel prices to Ksh300 per litre.

Speaking at the NADCO on Monday, November 6, the CS lamented that the ongoing conflict in Israel will harm global crude oil prices, thus pushing them higher.

This, he said, would risk increasing the fuel prices as announced every month by the Energy and Petroleum Regulatory Authority (EPRA).

"I read an article in the Financial Times the other day that because of the Hamas and Israeli War, the international prices could go up to USD150 and that would mean our products going to a high of Ksh300 at the pump," CS Chirchir told NDC.

The CS was responding to the committee on questions regarding what his ministry is doing to protect Kenyans from the rising cost of living.

He told the Kimani Ichung'wa and Kalonzo Musyoka-led committee that the Ministry was doing everything to prevent another episode of fuel price hikes which could worsen the state of the economy.

''So we are almost managing to scale the heights as we chew the gum every day to make sure we do manage this frame,'' CS Chirchir told the committee.

''These are products which are real drivers of inflation so we are consciously working on it on a day-to-day basis to make sure that although it's a global challenge we do obtain the best prices for our country."

Currently, the prices of fuel ahead of this month's review read as follows: Super Petrol, Diesel and Kerosene retail at Ksh217.36, Ksh205.47 and Ksh205.06 respectively.

The removal of the subsidy and upward review of Value Added Tax (VAT) on fuel from 8 per cent to 16 per cent saw the price of the commodity break past the record, twice.

President William Ruto's administration has faced sharp criticism regarding the move to increase taxes on fuel and the removal of subsidies which have for long helped in keeping the prices of fuel low.

Usually, the change in fuel prices is a ripple effect, with any increase in fuel prices triggering possible increases in the cost of matatu fares, food, transportation and power generation operational costs, which include the transportation and logistics sectors, which are vital for the distribution of goods across the country.

The high cost of living and operations have also forced executives to institute mass firings and freeze job hirings, signalling tough times under the current government.