CBK Reports Drop in Global Oil Prices Ahead of New EPRA Fuel Price Announcement

Kenyans are eagerly awaiting the latest fuel price announcement by the Energy and Petroleum Regulatory Authority following a significant decline in international crude oil prices, raising hopes of cheaper petrol, diesel and kerosene.

The latest development comes at a time when motorists, transport operators and households are struggling with the rising cost of living following the sharp increases recorded in the previous fuel review.

According to the Central Bank of Kenya Weekly Bulletin released on November 6, Murban crude oil prices declined significantly within one week, offering a potential reprieve for petroleum consumers.

The report indicated that crude oil prices dropped from USD 110.46 per barrel on October 29 to USD 94.04 on November 5.

This represented a decline of approximately 14.86 per cent, signalling a notable change in the international petroleum market.

The CBK attributed the decline to developments following the United States midterm elections and reduced concerns about possible disruptions to oil supplies from the Middle East.

The Kenyan shilling also remained stable against the US dollar, exchanging at KSh129.96 on November 5, providing another potentially favourable factor for petroleum import costs.

The latest developments come after EPRA announced significant fuel price increases in its October review.

Under the existing pricing structure, motorists in Nairobi are paying KSh226.96 per litre of Super Petrol, KSh227.76 for Diesel and KSh219.87 for Kerosene.

The October adjustment saw petrol increase by KSh12.93 per litre, diesel by KSh9.90 and kerosene by KSh28.49.

The increases placed additional pressure on households and businesses, with transport operators also facing higher operating expenses.

Treasury Cabinet Secretary John Mbadi had previously indicated that the government was considering using resources from the Petroleum Development Levy stabilisation fund to cushion consumers against rising fuel prices.

Mbadi explained that the government had preserved the funds during the previous review in anticipation of possible changes in international petroleum prices.

However, the decline in crude oil prices does not automatically translate into lower pump prices because EPRA considers several factors, including the cost of imported refined petroleum products, shipping, insurance, exchange rates, taxes and distribution expenses.

EPRA is expected to announce the new fuel prices on Saturday, November 14, with the revised rates taking effect on November 15.

Motorists across the country are now waiting to establish whether the decline in international oil prices will translate into cheaper fuel.

A reduction would provide relief to millions of Kenyans and potentially ease transport costs, food prices and other expenses linked to petroleum products.

https://peopledaily.digital/business/cbk-reports-decline-in-crude-oil-prices-ahead-of-new-epra-fuel-announcement?fbclid=IwY2xjawVlBUdleHRuA2FlbQIxMQBwZG9mBXNydGMGYXBwX2lkDDM1MDY4NTUzMTcyOAABH3zxQNa06Aiq2Luzp_5mjrpmU0TPldd5aRZZTM-9gHWYMM-rbELKaQ3btHwi_aem_a0ERTQyq69LLFJA5EYrYcg

Musyokasam feedback-opera-news-app@opera.com