The government has extended the fuel supply deal with Saudi Aramco, Emirates National Oil Co. and Abu Dhabi National Oil Co. for another 12 months.
Energy and Petroleum Regulatory Authority Director-General Daniel Kiptoo in an interview said the three companies will supply Kenya with petrol, diesel, kerosene and jet fuel until December 2024.
He said the new deal could give Kenyans relief at the pump after the government successfully re-negotiated the freight and premium cost with the gulf suppliers.
The current deal which expires in December has failed to stabilize pump prices and prevent the shilling from further depreciation, exposing an already overburdened public to more shocks.
Under the new deal, the government succesfully renegotiated the freight and premium cost which will now see diesel landing into Kenya at Ksh.88 down from the current cost of Ksh.118, petrol from Ksh.97.5 per freight to Ksh.90 and Kerosine from Ksh.140 to Ksh.111.7
While this will translate to ease at the pump, a lot will depend on the other factors, including global crude oil prices and foreign exchange rates.
In its latest price review, the Energy and Petroleum Regulatory Authority revised the prices upwards as follows; Super Petrol by Sh16.96, Diesel by Sh21.32 and Kerosene by Sh33.13.