National Treasury Cabinet Secretary John Mbadi has stepped into the fuel price debate with an explanation that shifts the conversation away from domestic policy decisions and toward what he describes as a global supply crisis rooted in the conflict in the Middle East.
Mbadi told Kenyans that the biggest challenge driving fuel prices is not taxation or government mismanagement but a fundamental disruption in supply.
Refineries in the Middle East have been hit as a direct consequence of the ongoing conflict involving Iran, and the damage done to that production infrastructure is not something that repairs itself overnight.
Even after hostilities end, he warned, rebuilding those refineries will take considerable time, meaning the supply problem is not going away any time soon.
He pushed back against the idea that the situation should be used as political ammunition, saying this is not something to incite people about.
In his view, the crisis is a global reality that Kenya is navigating alongside every other fuel importing nation.
What has kept Kenya from experiencing actual fuel shortages, he explained, is the Government to Government arrangement the country entered into with three Middle Eastern organisations.
Those contracts have ensured that supply disruptions have not translated into empty fuel stations, a scenario that would be far more devastating than high prices.
The cost of that security, however, is landing at a premium. The fuel is arriving but it is coming in at elevated prices, and the government has been absorbing part of that through subsidies.
For Kenyans already stretched by the cost of living, the explanation may be accurate but it offers little immediate comfort. Knowing why fuel is expensive does not make it any cheaper to fill a tank or run a matatu.
0 Comments