Wandayi Defends Fuel Import Deal Amid Price Disparity Concerns
By Suleiman Mbatiah
Energy Cabinet Secretary Opiyo Wandayi has defended the government’s fuel import framework, rejecting allegations of cartel influence and vowing action against profiteers amid scrutiny over significant price variations in March petrol shipments.
In a detailed statement, the Ministry of Energy and Petroleum attributed the disparity to differences between cargoes sourced under the government-to-government arrangement and those procured commercially, dismissing claims of manipulation in the pricing structure.
For March shipments, the ministry cited invoices showing that petrol supplied by One Petroleum aboard MT Paloma landed in Mombasa at KSh 198,855 per metric ton. In contrast, fuel delivered under the government-to-government deal by Gulf Energy through the G-2-G framework aboard MT FOS Mercury was priced at KSh 140,111 per metric ton.
The difference of KSh 58,744 per metric ton translates to approximately KSh 43.4 per litre, with the G-2-G cargo significantly cheaper. Both consignments were delivered within the same month, a factor that had triggered public concern over pricing consistency.
Wandayi dismissed assertions that the variance pointed to cartel activity, instead linking the debate to political narratives. “We have noted with concern a campaign of disinformation orchestrated by a section of political leaders over this unfortunate situation,” he said.
The Cabinet Secretary emphasized that the government remains committed to protecting consumers from exploitation, particularly amid global market volatility driven by geopolitical tensions in the Middle East.
“The Ministry reaffirms that there will be no tolerance for cartels, profiteers, or extortionists seeking to exploit the uncertainty arising from the conflict in the Middle East for personal gain at the expense of the public,” he added.
The ministry further clarified that Stabex International is not among oil marketing companies nominated under the international oil companies participating in the government-to-government arrangement, distancing the firm from the current supply framework.
Officials maintained that the G-2-G model continues to play a stabilizing role in the domestic fuel market by securing more competitive prices compared to spot market purchases.
The ministry said it will continue monitoring the situation and provide updates as necessary, amid ongoing scrutiny from stakeholders and the public over fuel pricing dynamics.
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