Energy CS Chirchir Says Fuel Prices Could Reach Sh300 Over Israel-Hamas Conflict

Energy CS Davis Chirchir has warned that fuel prices could go up should the Israel-Palestine war continue.

The CS was appearing before the National Dialogue Committee (NDC) on Monday when he asked Kenyans to brace themselves for more pain at the pump.

Chirchir said fuel prices could jump to Sh300 per litre should the war in Asia rage on.

Read: More Pain at the Pump as Petrol Prices Rise by Sh5 in Latest Review 

“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 literally mean our products going to a high of Ksh300 at the pump,” said the minister.

The CS told the committee that his ministry was working towards making sure that soaring fuel prices do not plunge Kenya into an economic crisis.

“So we are almost managing scaling the heights as we chew the gum every day to make sure we do manage this frame,” he said.

Read Also: Pain at the pump as petrol price hiked by Sh16.96 to retail at Sh211.64 per litre

“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.”

Motorists are currently purchasing a litre of Super petrol at Sh217.36, diesel at Sh205.47 and kerosene at Sh205.06, an all-time high.

In the last review, the Energy Petroleum and Regulatory Authority (EPRA) said the situation would have been worse were it not for the Government-to-Government arrangement that resolved the USD liquidity challenges that the petroleum sub-sector was faced with.

The authority argued that the intervention had slowed down the rate of depreciation of the shilling.

“In order to cushion consumers from the spike in pump prices as a consequence of the increased landed costs, the Government has opted to stabilize pump prices for the October – November 2023 pricing cycle.

“Oil Marketing Companies (OMCs) will be compensated for the under recovery of costs from the Petroleum Development Levy (PDL) in line with the PDL, Order of 2020,” said EPRA.