East African states could lose out on low oil prices

A filling station attendant fills a vehicle at a petrol station in Nyeri. Diesel prices have gone down from sh 101.80 to sh 99.50. Diesel users will breathe a sigh of relief following the latest fuel price review by the Energy Regulatory Commission. Photo: JOHN GATHUA/ STANDARD.

East African States are unlikely to significantly benefit from falling global oil prices due to inadequate storage facilities, a new research paper released by Deloitte East Africa has indicated.

“East African countries’ failure to set up sufficient oil storage facilities will mean that the region could miss out on a chance to accumulate cheap stockpiles as is the trend abroad,” the research note argues.