Low supply of diesel and high demand wordwide led to increase in price-CS Mbadi

National Treasury CS John Mbadi has said that the demand for diesel world over has gone up and yet the supply reduced because of the US/Israel led Iran war.
He said this Hs pushed up the cost of diesel all over the world.
He said in February before the war- the landed cost for 1 barrel of diesel was 650 usd and now 1120 usd.
Mbadi said that had the government not intervened, the price of diesel would be shs 273.
Currently, diesel is retailing at shs 242 and petrol shs 214.
He said the National Treasury released shs 5 billion to subsidize the fuel after an increase in the landing cost.
The war has led to the closure of the strait of Hormuz – a key transport corridor in Iran where most ships carrying oil from the gulf countries pass.
Mbadi said despite the high costs, the country is assured of continuous supply of fuel.
“There is a lot of propaganda that fuel is cheaper in neighboring countries. What people forget is that regionally- Kenya is a bigger economy and consumes more fuel. Currently, we are using the April stock. Whereas some of the neighboring countries are using the march stock,” Mbadi said.
The CS added that the Government has at least shs 5 billion to cushion Kenyans from any further increases before the end of the financial year.
“Today’s strike was not necessary. Al, the issues have been politicized. There is a lot of propaganda and misinformation which should be ignored,” he said.