Kenya Joins Oil Exporters, Fuel Prices to Drop
The government, through the National Oil Corporation (NOC), announced on Tuesday, May 2nd, that local exploration would result in lower fuel prices for Kenyans.
After taking control of the company from Patrick Obath, NOC Chairman Kiraitu Murungi made the announcement.
Kiraitu Murungi also disclosed that Kenya would soon join the Organization of Petroleum Exporting Countries (OPEC) and other oil-producing countries.
“You need to produce your oil because that is what you can control,” Kiraitu stated as he outlined the measures the government led by President William Ruto would implement to protect Kenyans from fluctuating global pump prices.
August 2018 photo of a person refueling a vehicle at a gas station.
The newly appointed chairman of the NOC revealed that external pressures were influencing fuel prices when asked why the nation needed to begin oil drilling.
This included the dollar’s volatility and global conflicts, which always impacted Kenya’s energy security.
“NOC was created to ensure energy security. NOC retains this relevance. Murungi added, “We also have a robust mandate in the upstream sector, which includes exploration and production.”
In June 2023, a review of the nation’s oil reserves will determine whether or not it will join the League of Oil Exporting Nations.
In June 2023, the Energy and Petroleum Regulatory Authority (EPRA) will present its findings regarding the commercialization of oil in the South Lokichar Basin.
Approximately 450 million barrels of oil are believed to exist in the Basin.
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The Kenyan government currently owns 22,5% of the oil in the Turkana-based Lokichar Basin.
According to Statista, Kenya imports an average of 3000 barrels per day. The 450 million barrels produced domestically would significantly benefit the economy.
Despite Ruto’s removal of fuel subsidies instituted by his predecessor Uhuru Kenyatta, oil prices in the country stabilized in 2023.
Ruto disclosed that the stability of oil prices was a result of his administration’s decision to purchase fuel. In the local currency rather than the U.S. dollar.
“I want to reassure those in Kenya who were facing difficulties gaining access to dollars that we have taken steps to ensure dollar availability in the coming weeks,” the president said on March 22. “Our fuel companies will now pay for fuel in Kenyan shillings.”
According to the EPRA fuel review for April 2023, the price per liter of super petrol, diesel, and kerosene in Nairobi was Ksh179.30, Ksh162.00, and Ksh145.94, respectively.
In Mombasa, a liter of Super Petrol costs Ksh176.98, diesel cost Ksh159.76, and Kerosene cost Ksh143.69.
Kenya Joins Oil Exporters, Fuel Prices to Drop
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