The Government of Kenya is likely to deal with a crisis in the petroleum sector over a fuel importation deal that expires at the end of the month.
This is after it emerged that the government-to-government deal the nation entered into to import fuel products with Saudi Arabia has only two weeks to elapse with no substantive deal yet to replace it.
Under the deal, the Government of Kenya entered into oil importation deals with other fuel-importing companies from the Gulf state to supply Kenya with the products on credit.
This was particularly to ease the pressure on the Kenyan Shilling which had suffered shocks as a result of the global dollar shortage.
Initially, Kenya used to import fuel products and pay instantly to the suppliers. However, since the government-to-government agreement took effect, the country has been able to purchase the products on credit.
However, Energy Cabinet Secretary Opiyo Wandayi refuted the claims of a likely crisis in the fuel sector, revealing that deliberations are in high gear to address the issue.
Wandayi added that there will be an interministerial conference that will meet and deliberate on the matter.
According to the CS, the conference headed by the Minister for Treasury John Mbadi will then issue a joint statement on the government's steps.
This is even after it emerged that the government is yet to strike another importation deal with only a fortnight to the expiry of the current agreement.
He maintained that the government was however proud that the deal helped reduce the fuel prices across the country.
The landing cost of fuel products has been comparatively low since the government started the new importation deal.
The above scenario consequently saw Kenyans have a slight relief at the pump prices, with the latest Energy and Petroleum Regulatory announcement capping the rates at Ksh176.29, Ksh165.06, and Ksh148.39 for Petrol, Diesel, and Kerosene respectively.
