Democracy for the Citizens Party leader Rigathi Gachagua has dismissed claims that the ongoing tensions around the Strait of Hormuz are the main reason behind the sharp rise in fuel prices in Kenya.
Instead, he accused President William Ruto of inflating the landed cost of petroleum products through the government-to-government fuel importation arrangement.
Speaking from the United Kingdom during a press briefing streamed live on his Facebook page on Tuesday, Gachagua argued that Kenya does not import fuel directly from Iran or through the Strait of Hormuz.
According to him, Kenya’s fuel is supplied by the Abu Dhabi National Oil Company in Dubai and Saudi Aramco in Saudi Arabia.
Gachagua claimed that the explanation linking Kenya’s fuel crisis to instability in the Middle East was misleading. He said the fuel imported into Kenya is processed and sold from Dubai and Saudi Arabia, adding that the government was using the Strait of Hormuz issue to avoid addressing what he described as the real cause of the high prices.
The former Deputy President further alleged that there was conflict of interest and state capture within the government-to-government fuel import deal.
He claimed the arrangement was benefiting a few individuals at the expense of ordinary Kenyans. Gachagua also alleged that President Ruto was making large profits from every litre of petrol and diesel imported into the country through the arrangement.
He claimed that the landed cost of petrol currently stands at Ksh 170 per litre while diesel stands at Ksh 167.
According to Gachagua, the President allegedly pockets Ksh 37 from every litre of petrol and Ksh 40 from every litre of diesel sold in Kenya. However, he did not provide any evidence to support the allegations or documents to verify the claims.
His remarks sharply contradicted statements made earlier by Treasury Cabinet Secretary John Mbadi, who linked the increase in fuel prices to global tensions in the Middle East.
Speaking on Monday, Mbadi said the world was facing a possible fuel crisis because of fears surrounding the Strait of Hormuz following rising tensions between the United States and Iran.
Mbadi explained that the Strait of Hormuz handles nearly 20 per cent of the world’s oil supply, making it one of the most important oil transit routes globally.
He warned that any disruption along the route could affect global fuel supply and prices, especially in African countries that depend heavily on oil from the Gulf region.
The Strait of Hormuz, located between Oman and Iran, remains under close global watch as military tensions continue to rise in the Gulf region.
Although the waterway remains open, concerns over possible supply disruptions have continued to push oil markets into uncertainty.
The debate comes at a time when Kenyans are struggling with rising fuel prices that have triggered protests and transport disruptions in different parts of the country.
Public outrage has continued to grow as businesses and commuters face higher transport and operational costs.
At the same time, the Energy and Petroleum Regulatory Authority announced a mid-cycle review of fuel prices following pressure from public transport operators.
Under the new changes, diesel prices were reduced by Ksh 10.06 per litre while kerosene increased by Ksh 38.60. Super petrol prices remained unchanged.
The latest review means Super Petrol will now retail at Ksh 214.25 per litre, Diesel at Ksh 232.86 and Kerosene at Ksh 191.38 across Nairobi.
