Kenya: Oil Firm Blames Rising Fuel Prices on Global Market Rates
Posted on: Wednesday, 17 August 2005, 09:00 CDT
Text of report by Kenyan KTN TV on 17 August
[Presenter] Oil prices in the country may not come down as expected despite threats by Energy Minister Simeon Nyachae to cancel licences for oil companies which have increased the price of the commodity.
Kenya Shell managing director Patrick Obath says the cost of fuel is determined by the cost of importing crude oil and market forces.
He said it would, therefore, be difficult for the company to reduce the prices of its products.
[Obath] Prices are actually determined by the cost of fuel that we import into this country from the international market, not only the crude prices but we also import finished product and we respond to those prices as and when they change.
I think it's lost on a lot of people that last month, that in July, the prices actually went down by about three or four shillings in different parts of the country. And then obviously with the change in prices, they would either go up or down.
Source: BBC Monitoring Africa
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