Kenyans Await EPRA Decision as Global Oil Prices Drop

Kenyans may heave a sigh of relief at the pump as global fuel prices continue to drop ahead of the next EPRA fuel price review.

On November 14, the EPRA will announce a new maximum retail price of petrol, diesel, and kerosene, which will be implemented from November 15.

This announcement has come after a fall in global prices of Murban crude.

For example, the Central Bank of Kenya says Murban crude oil was $110.46 per barrel on October 29, while on November 5, it was $94.04.

This is a decrease of approximately 14.86% in one week.The season has been welcomed as the first sign that fuel prices could finally settle for Kenyan motorists after prices were raised in October.

The two hydrocarbon products are paid for at maximum retailing prices of Sh226.96 and Sh227.76 for petrol and diesel in Nairobi, respectively.

The review in October raised the petrol price by Sh12.93 a liter, Sh9.90 for diesel, and Sh28.49 for kerosene.

This recent fall in the global oil prices also arrives at a most opportune moment for Kenyan consumers.Nonetheless, cheaper crude oil does not mean the cost of fuel in Kenya will go down by the same.

EPRA includes in its analysis the imported petroleum product prices, foreign exchange rates, taxation, transportation costs, and all other relevant levies.The Kenyan shilling against the US dollar has been stable.

Central Bank of Kenya States, the exchange rate for the shilling on November 5 was approximately Sh129.96 per dollar, the same as on October 29.

It might help stop currency movements from eroding part of the advantage of a fall in international oil prices.Additionally, there is another element that might affect fuel prices in November.

Treasury Cabinet Secretary John Mbadi also said the government might consider withdrawal from the Petroleum Development Levy stabilization fund to cushion the consumers.

The fund had last been used in October, but the government had avoided using it because it forecasted higher fuel prices in November, said Mbadi.

This has led to rising anticipation that the government might step in during the next round of price-setting.But no precise figure was revealed as to how much might be used.

Which implies that drivers will have to wait for the financial regulator to make the announcement of fuel reduction to reach the low so that they know whether they will actually pocket more at the petrol station.

For everyday Kenyans, this decision will have repercussions that extend past the petrol stations.A fall in diesel prices could mean lower transport and distribution costs for companies.

Fuel price cuts could ease the burden for consumers and operators in public transport.

Alternatively, if the fall in world oil prices is not in fact passed onto consumers in terms of lower import prices in Kenya, motorists could experience only a small fall in fuel prices or, indeed, no reduction at all.The present EPRA prices will apply through 14th November.

So on November 14th, when the regulator makes its announcement, all eyes will be on it as the Kenyans await to see if the decline in oil prices globally will make pump prices at home cheaper.

At least there’s hope for relief for the time being, but the final answer is with the EPRA.

https://peopledaily.digital/business/oil-prices-fall-but-will-kenyans-get-cheaper-fuel-epra-decision-set-for-november-14?utm_source=chatgpt.com

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