WSR alisema atapambana na Gatels the moment atawega biblia shini…
Okay, ndio hao mdau.
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President William Ruto’s plan to fully scrap fuel subsidies will face major headwinds after the world’s top oil-producing countries agreed to deeply cut exports to prevent erosion of revenues.
A group of 23 oil-exporting countries, commonly known as Opec+, on Wednesday, reached a deal to slash production by two million barrels per day, a move targeted at pushing prices per barrel back to $100 per barrel for the first time since July.
The cartel, which includes 13-member Organization of the Petroleum Exporting Countries (Opec) like Saudi Arabia and allies like Russia, said the decision was aimed at stabilising prices.
The decision by Opec+ countries has dimmed expectations of lower fuel prices in coming months, a projection that partly informed Kenya’s decision to remove subsidy on petrol last month.
“There was hope that the drop in global fuel prices might start filtering through the economy. Net importing countries like Kenya had been hoping for more relief, particularly with the removal of the subsidy programme,” said Ken Gichinga, chief economist at Mentoria Economics. “But now the price drop might not be as significant as we had expected.”
What do you expect him to do against OPEC ? ata mzee Biden is helpless, you know very well he meant akina Rubis who were raping small oil importers ! which so far he has done give credit where it is due !
Small players in the oil marketing sector have hailed President William Ruto’s move to scrap the fuel subsidy saying the programme was steeped in secrecy and controlled by cartels.
They said introduction of the subsidy marked the culmination of a deliberate move by big players involved in the open tender system to kick them out of business.
Speaking in Meru town on Saturday, Mt Kenya East Petroleum Dealers Association chairperson Ms Irene Kimathi said independent oil marketers were threatened with closure due to unfair competition. The other category is the franchised marketers who get fuel supplies from relevant multinationals.
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[li]In the first instalment of our series, The Oil Barons, Daily Nation reveals the multinationals making it big in oil imports to Kenya. Find out how oil gets to the pump, and why the procurement process has become a controversy that legislators were asked to investigate.[/li][/ul]
Mjamaa, that subsidy was in place for a much bigger reason than small players in the oil sector.
It was in place because of the economy and the global situation as is.
But we all love populists, don’t we? We all love it when we are told the reason for our problems is because of Person A or Company B instead of ourselves.
It was anticipated that OPEC+ was to pull this move given the way crude has been performing over the recent months.
But enter Ruto with his “Subsidizing Production, Not Consumption” mantra. He partially removes subsidies and sends everything over the roof with some stupid, amateurish hope of influencing the global economy.
What is more surprising is that despite the economy, we are busy proposing the addition of more positions (CAS) in order to reward loyalists.
Kenya needs to begin dealing with corruption and wastage to free up even more funds to afford items like subsidy and social programs.
Not these Pinky Ponky proclamations.
OPEC members are among the people that Run the world. They are the secret billionaires, achana na akina Elon Musk. Sasa you people want to say that William Ruto will deal with them when Joe Biden ameshindwa?
England is about to start power rationing. Things are getting bad and Foolish African leaders are still following the West. Ukraine war has nothing to do with Africa but everything to do with the West. Why can African leaders take this chance and buy their Oil from Russia? It will be much more cheaper than waiting for OPEC to announce the new OIL Pricing
