International Oil Prices Rise Again as Kenyans Await EPRA’s Next Fuel Price Announcement

Kenyan motorists face fresh uncertainty ahead of the next fuel price announcement after international crude oil prices recorded another increase. New Central Bank of Kenya figures show the latest movement could add pressure to the cost of importing petroleum products.

According to the CBK weekly bulletin published on Friday, October 30, Murban crude oil rose to USD 110.46 per barrel on October 29. The price stood at USD 108.23 per barrel on October 22, marking an increase within one week.

The latest figures represent a rise of USD 2.23 per barrel, equivalent to about KSh 283 based on the shilling values reported. The CBK attributed the increase to geopolitical risks, which continue weighing on expectations about global oil supplies worldwide.

The development comes as consumers await the Energy and Petroleum Regulatory Authority’s next review of retail prices for petrol, diesel and kerosene. The regulator considers international market movements and the cost of importing petroleum products when setting pump prices nationwide.

Kenya depends heavily on imported petroleum products, leaving local fuel costs exposed to global market changes. When international prices rise, importers may face higher costs, which can eventually be reflected in prices charged to motorists and other fuel consumers nationwide.

However, the crude oil increase does not automatically mean EPRA will raise pump prices in its next announcement. The final decision also depends on landed costs, the exchange rate, taxes, levies and regulated distribution margins applied during the review period.

The impact of fuel costs extends beyond motorists. Public service vehicle operators may face increased expenses, while businesses using diesel-powered generators and delivery vehicles could also come under pressure. Such costs can eventually affect transport fares and prices of goods.

Geopolitical tensions remain a major concern for energy markets because conflicts and diplomatic disputes can threaten production, shipping routes and supply chains. Traders monitor these developments, and uncertainty over supply can contribute to fluctuations in crude oil prices in markets.

Murban crude, produced in Abu Dhabi, is a benchmark for Middle Eastern oil and features in the CBK’s market updates. Its rise across the two reporting dates signals upward pressure, although prices can still change before EPRA completes its assessment.

Motorists will be watching the regulator’s next announcement for any adjustment to pump prices. Until EPRA publishes its official schedule, a possible increase remains uncertain, with the outcome depending on imported fuel costs and other components of Kenya’s pricing formula.

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