Fuel pricing: Davis Chirchir questions dollar rates
Cabinet Secretary for Energy and Petroleum, Davis Chirchir, during the launch of the Electric Vehicle Charging and Battery Swapping Infrastructure Guidelines on September 14, 2023 in Nairobi.
It remains to be seen whether the State will make good its bold statement to compensate consumers at the pump in the next review.
The drop in pump prices, the biggest since October 2021, came at the back of the continued fall in global prices of refined oil.
The fuel pricing formula is in the spotlight after Energy and Petroleum Cabinet Secretary Davis Chirchir questioned higher dollar rates used by the industry regulator to set costs of petroleum products.
The CS on Friday directed the Energy and Petroleum Regulatory (Epra) to get directions from the Central Bank of Kenya (CBK) on the dollar exchange rates to be used in calculating pump prices, claiming that some banks cited rates as high as Sh3 more, potentially impacting consumers a bigger reduction in pump prices.
