CS Wandayi Hints at Progressive Fuel Price Drop as Global Oil Market Stabilises

CS Wandayi Hints at Progressive Fuel Price Drop as Global Oil Market Stabilises

Energy and Petroleum Cabinet Secretary Opiyo Wandayi has hinted at the possibility of a gradual reduction in fuel prices in the coming months, offering hope to millions of Kenyans grappling with the high cost of transport, food, and other essential commodities linked to rising fuel expenses.

Speaking during a press briefing on Friday, May 29, Wandayi said the government was closely monitoring international oil market trends, noting that early signs of stabilisation in global supply chains and changing demand patterns could eventually ease pressure on local fuel prices.

The CS acknowledged that international oil prices had experienced fluctuations in recent months due to geopolitical tensions, supply disruptions, and changing global demand, but maintained that current indicators pointed toward a possible improvement in market conditions.

“Changes in demand patterns and improved supply routines are gradually stabilising international markets,” Wandayi told reporters.

While cautioning that the global petroleum market remains highly unpredictable, the Energy CS expressed optimism that the expected stabilisation would gradually translate into relief for Kenyan consumers through reduced fuel costs.

“In the fullness of time, as global conditions stabilise, Kenyans can expect the benefits to be felt progressively through the system,” he added.

His remarks come at a time when the country continues to witness growing public frustration over the rising cost of fuel, following recent price adjustments announced by the Energy and Petroleum Regulatory Authority (EPRA).

The latest fuel price increases triggered protests from public transport operators and business groups, who warned that higher fuel costs were increasing operational expenses and worsening the already high cost of living.

Several matatu operators across major towns previously threatened industrial action, arguing that sustained fuel price hikes had made it difficult for transport businesses to remain profitable without increasing fares for passengers.

Economic analysts say fuel prices remain one of the most politically sensitive issues in Kenya because of their direct impact on transport costs, food prices, electricity production, and overall inflation.

Wandayi defended some of the government’s fuel management strategies, saying ongoing reforms within the petroleum supply chain had helped cushion consumers from more severe price spikes witnessed in other parts of the world.

He particularly highlighted the fuel importation framework currently being used by the government, saying it had contributed to maintaining relatively stable freight and premium charges — key components in determining the final landing cost of fuel products in Kenya.

According to the CS, freight and premium costs under the current arrangement stand at approximately Ksh10,100.22 per tonne for diesel, Ksh10,877.16 for petrol, and Ksh12,562.47 for kerosene.

Energy sector experts note that freight and premium charges significantly influence pump prices, especially in countries like Kenya that rely heavily on imported refined petroleum products.

The CS further revealed that the government was exploring long-term strategies aimed at reducing the country’s dependence on imported fuel products and shielding the economy from global market shocks.

Among the plans under consideration is the establishment of regional petroleum refineries to strengthen energy security and lower long-term fuel import costs within East Africa.

Analysts argue that reviving regional refining capacity could help reduce reliance on expensive overseas refined products while improving fuel supply stability in the region.

Wandayi also assured Kenyans that the government remains committed to balancing consumer protection with maintaining stable fuel supply systems across the country.

The Ministry of Energy and Petroleum has faced increasing pressure in recent months from consumer lobby groups demanding greater transparency in fuel pricing formulas and petroleum importation agreements.

At the same time, economists continue to warn that sustained high fuel prices could slow economic recovery efforts by raising production and transportation costs across key sectors of the economy.

Businesses, manufacturers, and farmers have repeatedly cited fuel prices as one of the biggest drivers of inflation and increased operational costs over the past year.

Despite the cautious optimism expressed by the Energy CS, experts warn that global oil prices remain vulnerable to international conflicts, production cuts by major oil-producing countries, and fluctuations in global demand.

For now, many Kenyans will be watching closely to see whether the promised gradual relief at the pump materialises in the coming pricing cycles as pressure continues to mount on the government to address the rising cost of living.

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CS Wandayi Hints at Progressive Fuel Price Drop as Global Oil Market Stabilises