Kenya: Oil prices to remain high, says Shell

Oil prices are expected to remain high despite the recent call by the government call, urging local oil dealers to reduce pump prices.

Shell Company Managing Director Patrick Obath yesterday said that oil companies were making marginal prices from the sale of the product due to heavy taxation, making further price reduction non viable.


Obath said oil companies only control 10 per cent of the pricing mechanism while the rest of the pricing procedure is controlled by the government.

He said the reduction that Finance Minister Amos Kimunya had callled for was not tenable and that it only targeted the oil companies gross profits, leaving out the Government profit from the sale.

Kenya Times