Energy ministry officials were on Tuesday at pains in explaining the major increase in fuel prices despite having renewed the Government-to-Government
fuel deal aimed at cushioning Kenyans from price volatility.
Energy and
Petroleum Cabinet Secretary Opiyo Wandayi failed to convince MPs on why
Kenyans continue to face high fuel prices despite the ongoing
Government-to-Government (G-to-G) oil import deal meant tact as a cushion.
Appearing before
the National Assembly’s Energy Committee, Wandayi was pressed to account for
the disconnect between the objectives of the G-to-G arrangement and the
persistent spike in pump prices.
The committee
chairperson, Tom Odege, who is the Nyatike MP, expressed disappointment that despite the touted benefits of lower landing costs negotiated with
international oil firms, the expected relief for consumers has not
materialised.
“Kenyans are
watching you today. Your technical team can cite freight and premium figures,
but what people care about is why prices remain high. We expect you to defend
their interests,” said Odege.
The Energy and
Petroleum Regulatory Authority announced sharp increases in fuel prices in its
latest monthly review, citing higher international landing costs of petroleum
products and exchange rate pressures.
According to
EPRA’s statement released Monday, the maximum pump prices for the period
running from July 15 to August 14, 2025, have risen by an average of Sh9 per
litre across the board.
However, Wandayi attributed
the recent hike in pump prices to a 6–9 per cent increase in international oil
prices between May and June 2025. These price changes, he said, translated to
an increase of Sh5.10 per litre for petrol, Sh5.90 for diesel, and Sh5.74 for
kerosene.
The G-to-G
importation framework—implemented in March 2023—was designed to ease pressure
on foreign exchange reserves and stabilise fuel supply.
The agreement
allows for the importation of petroleum, diesel, and jet fuel under a deferred
payment plan of 180 days, coordinated centrally by the ministry.
Data by the
ministry of energy shows that from 2023 to June 2025, 170 cargo have been
delivered with the government receiving $12.34 billion (Sh1.6 trillion) worth
of petroleum products delivered under the G-to-G arrangement.
Further letters of
credit valued at $10.9 billion (Sh1.41 trillion) have already been settled.
Wandayi attempted
to justify the deal by pointing an accusing finger to Members of parliament for
enacting many taxes that have hiked the cost of fuel.
“So, it is not
this parliament that determines the price of food, there are so many things we
can get into because there are issues of taxes, which country versus which
country, which country taxes its citizens more. So, we need to really get the
time and I don't want to go into those because I have so many points,” said
Wandayi.
The CS compared Kenya’s
fuel landing costs with neighboring Tanzania, citing data from July indicating
that Kenya achieved lower freight and premium charges—$84 per metric tonne (Sh10,899)
for diesel $78 (Sh10,121) for petrol and $97 (Sh12,587) for Jet fuel against
Tanzania’s diesel, $135 (Sh17,518) and $190 for jetfuel.
However, MPs
quickly pointed out that cheaper landing costs had not translated to lower pump
prices in the past months.
“To further
clarify, I did not in any way imply that Parliaments or the National Assembly,
for that matter, plays a role in fixing petroleum product prices. No. But I did
say that those taxes and levies that are imposed on petroleum products have to
be approved by Parliaments,” said Wandayi.
The committee
raised concerns about the border counties, whose residents were now crossing
into neighbouring countries to buy cheaper fuel.
“You know, what
the Kenyans will take from you today is about the price of oil as compared to
our neighbours. And your reasoning might not convince Kenyans, because you
know, we expect you to defend the interests of Kenyans.”
“You cannot
convince my constituents to fuel in Kenya when it’s cheaper across the border. Your
argument isn’t convincing,” said the committee chair.
Wandayi clarified
that while Parliament does not set prices directly, it approves the tax and
levy structures imposed on petroleum products. These, he argued, contribute
significantly to the final cost at the pump.
“It is not
Parliament that fixes fuel prices, and we’ve never been involved in pricing
discussions. The Energy Committee should be part of such decisions since we
represent the people,” said the committee deputy chair and Member of
Parliament, Embakasi South Julius Mawathe.
The members noted
that the Ministry had not shown empathy in addressing public concerns over the
rising prices, especially at a time when global oil prices had dropped between
June and July.
“Globally, fuel
prices went down—but not in Kenya. That’s why Kenyans are angry,” charged
Mawadhe. “It’s not just about price but also how the Ministry has
communicated—or failed to communicate—with the public.”
