NAIROBI, Kenya Mar 12 \u2013 Former Public Service Cabinet Secretary Moses Kuria has dismissed fears of a sharp rise in fuel prices in the upcoming review, saying current pricing structures make an immediate spike unlikely despite tensions linked to the Iran\u2013Israel\u2013US conflict.<\/p>\n
In a statement, Kuria said Kenya\u2019s fuel pricing system is based on the M\u20131 formula, meaning prices for March are determined by fuel shipments made in February\u2014before the latest geopolitical developments affecting global oil markets.<\/p>\n
\u201cThere is no way on earth there will be a major spike in the price of fuel in this week\u2019s review,\u201d Kuria said.<\/p>\n
According to Kuria, the M-Minus One pricing mechanism means any global shocks affecting oil prices would take time before impacting Kenya\u2019s pump prices.<\/p>\n
He explained that March prices reflect shipments ordered in February, before the escalation of tensions involving Iran.<\/p>\n
However, he noted that minor variations could still occur due to logistical changes or higher shipping insurance costs.<\/p>\n
Kuria also pointed to Kenya\u2019s government-to-government (G-to-G) fuel supply arrangement, saying it reduces the risk of artificial price manipulation or supply disruptions.<\/p>\n
Under the arrangement, Kenya sources fuel directly from national oil producers including Abu Dhabi National Oil Company (ADNOC) and Saudi Aramco.<\/p>\n
He contrasted this with some neighbouring countries that rely on international commodity traders such as Vitol, which he suggested may expose them to greater market volatility.<\/p>\n
Kuria cautioned that any price impact linked to the Iran crisis could take several weeks before reaching Kenyan markets.<\/p>\n
\u201cIf one wants to spread despondency to our motorists let them wait for some four more weeks for the Iran crisis impact to land in Mombasa,\u201d he said.<\/p>\n
He assured motorists that no immediate crisis in fuel pricing is expected in the current review cycle.<\/p>","protected":false},"excerpt":{"rendered":"
NAIROBI, Kenya Mar 12 \u2013 Former Public Service Cabinet Secretary Moses Kuria has dismissed fears of a sharp rise in fuel prices in the upcoming review, saying current pricing structures make an immediate spike unlikely despite tensions linked to the Iran\u2013Israel\u2013US conflict. In a statement, Kuria said Kenya\u2019s fuel pricing system is based on the […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-134002","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/134002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/comments?post=134002"}],"version-history":[{"count":0,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/posts\/134002\/revisions"}],"wp:attachment":[{"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/media?parent=134002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/categories?post=134002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chezaspin.com\/blog\/wp-json\/wp\/v2\/tags?post=134002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}