Energy CS Davis Chirchir says that the cost of fuel could rise to Ksh 300 per liter due to the ongoing Israel-Hamas conflict.
Petroleum product prices have risen from Ksh.10,584 per barrel to Ksh.13,608 per barrel, according to CS Chirchir, who testified before the National Dialogue Committee (NADCO) on Monday, and the situation could deteriorate given the continued violence.
"We cannot do anything about the global pricing of petroleum which has soared from 70 dollars per barrel to 80 dollars and then to 90 dollars," CS Chirchir told the National Dialogue Committee.
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There is concern that the region's increasing tensions could push up oil prices by restricting a crucial transit route for seaborne cargoes of oil and gas from the Middle East to the global market, jeopardizing central bankers' efforts to curb excessive inflation.
If major Arab producers limit exports, such as Saudi Arabia, global oil production might decline by 6 million to 8 million barrels per day, causing prices to rise to between $140 and $157 per barrel.
International prices are expected to grow, potentially reaching USD 150 per barrel, according to a Financial Times story cited by the CS.
"And I read an article recently in the Financial Times recently that prices are likely to go up to USD 150 per barrel," he added.
"That would literally mean our products going to the highs of Ksh.300 per liter, but we hope it does not get there.'' said the CS
Inflation, which, according to the CS, has caused the Kenyan shilling to weaken, as well as the mop-up of the US dollar, which has tremendously affected the oil market, leading fuel prices to rise, are among the causes that continue to aggravate fuel prices.
