Nairobi — Azimio La Umoja One Kenya leader Raila Odinga has called for the reduction of fuel prices by between Sh45 and Sh50 saying that global oil prices have reduced.
According to Odinga, it is unfair for the Energy and Petroleum Regulatory Authority (EPRA) not to reduce the prices of petroleum in the wake of what’s happening in the world market where prices have dropped.
He stated that the prices should be reduced by to cushion Kenyans from the pressure caused by the high cost of living.
”With the price of petroleum products having dropped in the world market, Azimio la Umoja Coalition demands that local prices should be reduced by Sh45 or Sh50,” he said.
Earlier, the government warned that motorists may face the grim possibility of fuel prices reaching a high of Sh300 per liter soon, driven by escalating tensions in the Middle East.
The warning by Energy Cabinet Secretary Davis Chirchir indicated that it could surge by as much as Sh80 per liter, a significant increase from the current Sh217 per liter, primarily attributing this alarming forecast to the ongoing turmoil in the Middle East.
Chirchir outlined the looming crisis during a meeting with the National Dialogue Committee, stressing that the price of crude oil could skyrocket to as much as $150 per barrel if the conflict in the Gaza Strip between Israel and Hamas persists.
”We can’t do much when it comes to international pricing of petroleum which has soared from $70 per barrel and I read an article from the Financial Times that the prices could go up to $150 due to the Israel-Hamas war,” he said.
That, he said, ”could literally mean our prices going up to Sh300 per liter but we hope it doesn’t get there.”
The Energy Cabinet Secretary clarified that the government’s capacity to influence such spikes in fuel costs remains limited, given that global issues, including inflation and geopolitical conflicts primarily drive these developments.
While neither Israel nor the besieged Gaza Strip are significant oil producers, markets have been jolted by fears that the conflict could lead to wider regional instability.
The Middle East is home to some of the world’s biggest major oil producers, including Iran and Saudi Arabia.
Analysts have portended that the US could tighten sanctions on Iran should it be implicated in Hamas’ attack on Israel, which could further strain an already undersupplied oil market.