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Kenya’s state-owned oil company the National Oil Company of Kenya (Nock) has struck a deal with Saudi Aramco to import fuel at below global rates to help lower pump prices in the African state, according to reports.
African website Business Daily said the two companies had made an exclusive agreement to import 30 percent of the country’s requirements from Saudi Arabia, to pull down prices and ease the burden on customers.
The plan is to start trials of the imports in August and then commence a full contract in October, according to Nock’s CEO Leparan ole Morintat.
Saudi Aramco will finance the shipments or provide the product with an extended credit period and Nock will pay within 60 and 90 days, according to the Business Daily report.
The imports will also be used to provide strategic stocks for the country to protect it from a fuel shortage due to disruptions globally, including the Russia-Ukraine war, which broke out in February.
The war has also been causing concerns about food shortages in African countries as grain shipments from Ukraine, one of the world’s largest suppliers, are blocked by the conflict.
Saudi Aramco will arrange the financing of the commodity with financiers in Dubai.
Kenya, like many countries, has seen record petrol pump prices, of KES 159.12 ($1.35) per liter for super and KES 140 for diesel.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
