Global consulting company, Deloitte East Africa, has urged countries in the East African region to construct oil storage facilities to take advantage of falling global oil prices
The firm stated in its latest report released in Nairobi that regional countries are unlikely to benefit from falling global oil prices due to inadequate storage facilities.
“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 study revealed.
The report noted that the prices of crude oil have fallen sharply since July 2014 and Kenyans, including their counterparts in the East African region expect the retail prices of petroleum to drop.
“The plunge in prices of oil has rekindled the debate whether lower prices are cascading down to drivers such as the cost of electricity (generated from fossil fuels) and if travelers are feeling the benefits,” said senior tax manager with Deloitte East Africa Joseph Thogo. “When global prices go up, we usually witness the meteoric increase in petrol prices and all sectors that depend on petroleum products such as manufacturing and transportation."