State-owned National Oil Corporation of Kenya will from August start shipping fuel from Saudi Arabia at lower prices than the global rates in the latest push by the government to lower pump prices.
This is through a government-to-government deal that will see the State-owned Saudi Aramco supply Nock with refined fuel at ‘exclusively’ lower prices than the global costs of crude.
Nock will, under the deal, import 30 percent of the country’s monthly petroleum requirements from August in what is likely to help pull down pump prices and ease the burden on consumers. Nock says a Memorandum of Understanding has already been signed.
“We already signed the MoU and the next phase is negotiating the contract terms, we are waiting on them as from last Sunday,” Nock Chief Executive Officer Leparan ole Morintat told Business Daily.
“The plan is to start trials in August, for two months and see the impact of the exclusive prices that Saudi Aramco will be giving us. Then we will fully start in October.”
The duration of the contract remains undisclosed with Nock expected to revamp its network across the country.