State's fuel import deal rattles industry, but no cheap fuel yet

Gapco Company Limited trucks waiting to collect rejected fuel from the Kenya Pipeline Company storage tanks. [File, Standard]

While the recently unveiled government-to-government petroleum import deal has the potential to reduce pump prices, there are concerns that the gains might not be passed to consumers due to how the deal has been structured.

The deal, it is now emerging, has given some of the players along the supply chain discretion to decide the foreign exchange rate that they can charge.