Kenya to experience minimal oil supply disruptions: EPRA says

The Energy and Petroleum Authority (EPRA) has reiterated that Kenya’s security of supply is assured, backed by the government-to-government deal between the government of Kenya and Saudi Arabia.

According to EPRA Director General Daniel Kiptoo there could be a possible change to the loading port to counter the effect of the closure of the Strait of Hormuz, a key shipping line that controls nearly 20 percent of global oil supply.

“We are following it daily with the suppliers of the country and as you may be aware these are traders in terms of the load ports that could change in the event there is a challenge at one port so then the closure or the challenge of the Strait may not necessarily apply to ourselves…working together with the suppliers we’re looking at different loading ports,” said Kiptoo.

EPRA further notes that it's yet to get into the pricing cycle after the conclusion of the current cycle on the 9th of this month, to compute prices for the next cycle.

But the authority has sought to assure the country of minimal impact on the price, based on the war.

Kiptoo, who did not give specifics, noted that the country has sufficient supply in its reserves, which will be boosted with the planned cargo scheduled to arrive in the course of the month, through to early April.

“As you may be aware, we price on an M-1 basis. The product that we are pricing today was delivered into the country between the 9th and the 10th of the preceding month. So, in the events that are currently occurring in the Middle East, we do not anticipate that that will have an impact in this current pricing cycle, but hopefully we will be able then to see the impact as we go ahead,” he said.

The regulator says they will monitor the situation and adjust accordingly in the coming days, insisting that price adjustments will balance the interests of the state consumers and the government's priority.