Fuel prices are likely to drop by December of this year, Central Bank of Kenya Governor Dr Patrick Njoroge has projected.
Speaking during the Members of Parliament induction this week, Njoroge said fuel prices will reduce irrespective of President William Ruto scrapping the subsidy.
He explained that while the cost of fuel in the international market had hit a record high in previous months, the cost had begun dropping.
“As you can see it had gone as far as $130 a barrel, that was in March and now it has come down to $93 a barrel,” Njoroge said.
“The expectation is that this will come even more to the point where we wouldn’t have to have the subsidies.”
The CBK governor attributed this drop to the resumption of relative normalcy in oil-producing countries.
Njoroge noted that while the regulator will execute its mandate by trying to regulate inflation, a more permanent solution will be realised when the cost of fuel drops.
He also agreed with President Ruto that fuel subsidies were detrimental to the Kenyan economy.
“It is true we eliminated the fuel subsidies on the Super, Diesel…. We have the price coming down and thus the gap is widening so the pressure on the consumer and the government becomes less and less. That is the expectation but let’s wait and see,” Njoroge said.