The National Oil Corporation of Kenya has reduced its pump prices in a move it says is aimed at bolstering the government’s efforts to reduce the price of fuel in the country.
The State-owned oil marketer cut its pump prices by Sh2 effective last Friday for super, diesel and kerosene at all its outlets.
“We will continue seeking ways of cushioning Kenyans against high fuel prices that have triggered a sharp rise in the cost of living,” said National Oil managing director Sumayya Athmani.
The move comes after the government reduced excise duty on kerosene by 30 per cent and diesel by 20 per cent to calm public anger over rising cost of living.
Following the tax reduction by Finance minister Uhuru Kenyatta mid this month, the Energy Regulatory Commission - the industry regulator - promised to announce the new fuel prices later. But it yet to release them.
Ms Athmani said the price reduction is one of the initiatives the corporation has embarked on to reduce fuel prices as it works towards fulfilling its mandate to stabilise prices in the country.
Already, she said, they have successfully implemented the Kerosene alternative delivery channel project that has reduced distribution layers or middle-men thus cutting the cost of the commodity by as much as Sh5 compared to other oil marketers.
“We are also in talks with oil producing nations for long term oil importation contracts to save Kenyans from rising costs of fuel,” said Ms Athmani. “The talks with these countries that include Kuwait and Qatar, are in high gear.”
Also in the pipeline to cool soaring oil prices is the establishment of a national strategic reserve and the construction of a second petroleum-offloading jetty. The contract for the two projects will be awarded in June.
Another intervention is also pursuing plans to import bio-diesel from Brazil for local blending while exploration activities have been intensified.
