Kenyan Vice-President says oil companies fail to adjust prices

Kenyan Vice-President George Saitoti has expressed hope that petroleum companies would make adjustments in reflecting the changes arising in the international oil prices.
Saitoti pointed out that petroleum companies in the country had failed to make due adjustments in response to the price changes in the world market.
The vice-president said that liberalisation of the oil industry in the east African country is yet to produce competitive prices which can benefit the country' s consumers and economy.
He said the importance of the petroleum industry in Kenya was immense as it was the main moving force behind the transportation sector and most other industries.
The oil prices influenced the inflation rate in the economy and were also important elements in the competitiveness of Kenya's exports, said the vice-president.

Saitoti, who is also the Minister for Planning and National Development, noted that the adoption of liberalisation in the oil industry was aimed at allowing market forces to play a leading role in influencing resources allocation and price determination so as to enhance efficiency for a more rapid growth of the economy.
He said that the measures taken by the Kenyan government to liberalise the industry included the removal of the price control on all oil products and scrapping the crude oil quota of Kenya's National Oil Corporation.
Saitoti added that transport modes were set free and more dealers were recently allowed to enter the market, thus increasing the competition in the oil industry.

Kenya introduced liberalisation measures in the petroleum sector in 1994.