RUTO in tears as Saudi Arabia complicates matters for him – See what it has done after the President signed a multi-billion oil deal?

 

Wednesday, July 5, 2023 – Kenyans should brace for even tougher times ahead. This is after Saudi Arabia cut oil exports to the world.

Saudi Arabia and Russia have cut oil production by 1 million and 500,000 barrels per day, respectively, a move that has sent shockwaves in the international energy landscape, sparking fears of a deficit in the global market. 

Economic experts warned that the ripple effect may be bigger than expected, including the immediate increase in oil prices.

The news sparked fears in Kenya that the cost of fuel may rise further a few days after the Energy and Petroleum Regulatory Authority (EPRA) reviewed fuel prices upwards in line with the 16% VAT on petroleum products.

The new development comes after President William Ruto’s government signed a deal with Saudi Arabia to supply Kenya with oil and be paid in Kenya shillings instead of dollars.

Giving intricate details of the deal in March 2023, Energy and Petroleum Cabinet Secretary Davis Chirchir explained that the dollar would not determine fuel prices in the country as the government would purchase petroleum products in Kenyan shillings through a credit system for six months.