The letter authored by President Yoweri Museveni’s Energy Ministry Permanent Secretary Pauline Irene Batebe, wants Kenya to give Uganda a fixed monthly amount to ease shortages that have driven pump prices higher.
Uganda requested Kenya to allow it to ship 110,660 cubic meters of petrol and 110,400 cubic meters of diesel monthly to meet the rising demand.
According to Bloomberg, Batebe further stated that they want to be assured of a monthly provision of 12,000 cubic meters of aviation fuel without indicating the current allotments.
Motorists in Kampala are spending Ksh141.45 for a litre of super petrol. A litre of diesel in Kampala is retailing at Ksh141.45 compared to Nairobi where it is going for Ksh115.60.
In Kenya, the government instituted a fuel subsidy and a number of top leaders led by President Uhuru Kenyatta blamed the Russia-Ukraine war for the spike in prices.
But economists have cautioned that the government will struggle to pay oil marketers over Ksh25 billion to keep pump prices intact despite a jump in the cost of shipping.
Oil prices have jumped more than 30 per cent since 24 February. Energy and Petroleum Regulatory (EPRA) announced an increase in fuel prices in its mid-month review.
In the revised prices, the cost of a litre of super petrol jumped by Ksh9.90 to retail at Ksh144.62.
Diesel is currently retailing at Ksh125.50 while Kerosene is going for Ks113.44 per litre. Diesel and kerosene costs increased by the same margin of Ksh9.90 per litre.
Notably, the government offered a subsidy of Ksh29.08 for a litre of super petrol, Ksh40.24 for a litre of diesel and Ksh26.45 for a litre of Kerosene.
Without the subsidy, the products would retail at Ksh173.70, Ksh165.74 and Ksh139.89 for super, diesel and Kerosene respectively. The increase in fuel prices is a result of the jump in costs of crude oil in the international market.
Source: KENYAGIST.COM