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Why Your Petrol Bill Could Skyrocket Without State Control, Wandayi Warns

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What They Don’t Tell You at the Pump

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Energy Cabinet Secretary Opiyo Wandayi has defended the government’s fuel pricing and importation framework, insisting that Kenyans would be paying far higher prices at the pump if the State did not intervene in the petroleum supply chain.

Speaking during a public engagement in Nairobi, Wandayi said the current fuel pricing system is designed to cushion consumers from global oil market shocks, which have remained volatile due to geopolitical tensions, fluctuating crude oil prices, and supply chain disruptions.

He argued that without government oversight through regulated importation and the Energy and Petroleum Regulatory framework, fuel prices in the country would be significantly higher and more unpredictable.

Wandayi noted that the State plays a central stabilising role by coordinating bulk fuel importation through appointed suppliers, a system intended to achieve economies of scale and reduce speculative pricing in the domestic market.

He explained that this arrangement helps ensure consistent supply across the country while limiting sharp price spikes that would otherwise be passed directly to consumers.

He further emphasized that fuel pricing in Kenya is influenced by a combination of international crude oil prices, shipping and insurance costs, exchange rate fluctuations and statutory levies.

According to him, the government’s regulatory interventions help smooth out these variables to prevent extreme volatility at the pump.

The Energy CS also dismissed claims that the framework disadvantages consumers, stating that comparisons with fully liberalised markets often ignore the protective mechanisms Kenya has adopted to shield households and businesses from sudden economic shocks.

He maintained that removing government oversight would likely expose consumers to uncontrolled pricing by private importers responding directly to global market shifts.

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Wandayi acknowledged public concern over the cost of living, particularly the impact of fuel prices on transport, food distribution, and manufacturing costs.

However, he reiterated that the government is continuously reviewing the petroleum supply structure to improve efficiency, enhance transparency, and reduce unnecessary costs within the value chain.

He also pointed to ongoing reforms aimed at strengthening the petroleum sector, including digitisation of importation processes and tighter monitoring of distribution margins, saying these measures are intended to eliminate inefficiencies and ensure fair pricing for consumers.

At the same time, he urged stakeholders in the transport and logistics sectors to avoid speculation driven pricing, warning that artificial inflation of transport costs worsens the burden on ordinary citizens.

Wandayi concluded by reaffirming the government’s commitment to maintaining a stable and predictable fuel market, stating that energy security remains a key pillar of the country’s broader economic agenda.

He said the administration will continue balancing market forces with regulatory oversight to protect consumers while ensuring long term sustainability of fuel supply.

As debates over fuel costs persist, the Energy Ministry maintains that its interventionist approach remains necessary in a market heavily exposed to global volatility, even as critics continue to push for deeper liberalisation and greater competition in the importation and distribution of petroleum products.

  • pinit_fg_en_rect_gray_20 Why Your Petrol Bill Could Skyrocket Without State Control, Wandayi Warns

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