Gachagua dismisses Strait of Hormuz link to Kenya’s high fuel prices as ‘hot air!’
Gachagua dismisses Strait of Hormuz link to Kenya's high fuel prices as 'hot air!’
DCP leader Rigathi Gachagua has dismissed claims that the ongoing global tensions around the Strait of Hormuz are responsible for Kenya’s surge in fuel prices, instead accusing President William Ruto of inflating the landed cost of petroleum products through the government-to-government fuel importation deal.
Speaking from the United Kingdom during a press briefing streamed on his Facebook page on Tuesday, Gachagua claimed Kenya does not source its fuel directly from Iran or via the Strait of Hormuz, but rather from the Abu Dhabi National Oil Company (ADNOC) in Dubai and Saudi Aramco in Saudi Arabia.
“Our fuel doesn’t come from Iran. It doesn’t go through the Strait of Hormuz. Our fuel is sold by ADNOC in Dubai and Saudi Aramco in Saudi Arabia, that’s where the fuel is processed and therefore this story that we’re having a challenge because of the Strait of Hormuz is hot air,” Gachagua alleged.
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The former DP further alleged that the real problem in Kenya’s fuel pricing stems from “conflict of interest and state capture” within the government-to-government (G-to-G) fuel import arrangement.
“The real issue facing our country in matters fuel is conflict of interest and state capture. The G-to-G arrangement is a business agreement by President Ruto through Gulf Energy to fleece Kenyans and the issue is not the taxes, it is the landed cost of fuel in Kenya,” he claimed.
“As we speak today, the landed cost of oil in matters Petrol is Ksh.170, and Diesel is Ksh.167. We have information that is confirmed that in the landed cost of Petrol, William Ruto pockets Ksh.37 per litre, and in Diesel he pockets Ksh.40 per litre. This is what we need to discuss.”
However, Gachagua did not provide any evidence to substantiate the allegations against the President or the claims regarding the fuel pricing structure.
His remarks contradict statements made by Treasury Cabinet Secretary John Mbadi, who attributed the spike in fuel prices to global market disruptions linked to tensions in the Middle East.
“We are concerned that the transport sector is basically paralysed because of the strike but it is important to understand the background of where we are today. This is a global phenomenon. The high fuel prices are a world crisis,” Mbadi stated on Monday, May 18, during a press briefing.
He added: “The Strait of Hormuz is where at least 20 per cent of the world’s oil supply comes from but Africa is even more affected because the bulk of our fuel supply comes from that region.”
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