Fuel destined to Kenya is now being loaded from various ports across the world under the Government-to-Government to ensure supply stability, Energy and Petroleum Cabinet Secretary Opiyo Wandayi has said.
According to Wandayi, Kenya’s fuel supply remains secure, stable, and well-managed under the G2G framework amid global fluctuations owing to tensions between the United States and Israel.
A new update by the ministry indicates that marketers under the framework have secured loading points for Kenyan fuel cutting reliance on the Strait of Hormuz which continues to face security challenges.
Wandayi said the G2G framework has helped the country in reducing exposure to volatility, and providing a buffer during global uncertainty.
“Beyond this, the G2G framework has also enabled greater diversification in sourcing fuel. Cargoes are now being loaded from a broader range of international supply points, including Europe, the US Gulf Coast, India, and the Red Sea region,” said Wandayi.
He added that the diversification has strengthened resilience, reduced reliance on any single route, and ensures continuity even when traditional supply channels face disruption.
“We continue to benefit from the stability of the G2G framework in pricing: in that, while our freight and premium costs remained relatively stable at approximately USD 78 – 97 per tonne under pre-agreed arrangements, some markets exposed to open spot purchasing experienced freight and premium costs rising to approximately USD 250 – 300 per tonne during the same period,” he noted.
The government while assuring stability in fuel supply amid escalating prices said Kenyans should expect benefits as situations normalizes as the country and partners plot to establish a refinery in the region
