Energy Cabinet Secretary Davies Chirchir appeared before the National Dialogue Committee to make a submission over the high cost of fuel.
In his submission, Chirchir said the price of fuel is likely to cross the KSh 300 mark in the near future. Currently, Petroleum prices are retailing at KSh 217 per liter.
The CS said the ongoing Israel-Hamas war that erupted early last month is likely to push the cost of fuel up.
“I read an article in the Financial Times the other day that because of the Hamas and Israeli War, the international prices could go up to USD150 and that would literally mean our products going to a high of KSh 300 at the pump,” the CS said.
The CS was responding to questions on what the ministry was doing to cushion Kenyans from the rising cost of living.
Chirchir told the Kimani Ichung’wah and Kalonzo Musyoka-led committee that the ministry was doing everything within its power to curtail further hikes which could push Kenyans into an economic crisis.
”So we are almost managing to scale the heights as we chew the gum every day to make sure we do manage this frame,
”These are products which are real drivers of inflation so we are consciously working on it on a day-to-day basis to make sure that although it’s a global challenge, we do obtain the best prices for our country,” he added.
The World Bank’s latest Commodity Markets Outlook found that the global oil supply would shrink by six million to eight million barrels per day should the conflict in the Middle East escalate
That would drive prices up by 56 percent to 75 percent, to between $140 (Sh21,077) and $157 (Sh23,636) a barrel, a significant geopolitical risk to oil markets since Russia’s invasion of Ukraine last year.
