NAIROBI, Kenya- The Government has ordered the removal of a 60,000-metric-tonne consignment of Super Petrol imported outside the official Government-to-Government (G-to-G) framework, warning it could have caused a spike in fuel prices.
The consignment, imported by One Petroleum Ltd., was priced at S 198,000 per metric tonne, significantly higher than the Sh140,000 per metric tonne rate under the G-to-G framework.
The difference of KSh 58,000 per metric tonne would have translated into a KSh 14 per litre increase at the pump.
The G-to-G agreements, signed in March 2023 with international suppliers including amco Trading”,”global petroleum trader”, ADNOC Global Trading Limited Emirates National Oil Company (Singapore) Private Limited, are designed to ensure stable fuel supply, maintain price stability, and protect consumers from global market volatility.
“Since the successful importation of the first cargo in April 2023, the G-to-G arrangement has served the country effectively, ensuring a stable supply of refined petroleum products both locally and regionally, while supporting foreign exchange stability,” he stated.
Energy Cabinet Secretary Opiyo Wandayi said the government has taken swift action to safeguard the market.
The directives include:
- Withdrawal of all invoices and issuance of credit notes by One Petroleum Ltd.
- Oil Marketing Companies are instructed not to pay for or uplift the consignment.
- The consignment must be exported out of Kenya immediately.
- EPRA will exclude the product from monthly fuel cost computations.
CS Wandayi emphasized that the government will remain vigilant to prevent artificial shortages or unjustified price increases, assuring Kenyans that the G-to-G framework will continue to ensure a stable and affordable fuel supply.
