Govt Offers Hope On Reduced Fuel Prices Days Before EPRA Review
The Central Bank of Kenya, during its Weekly Review towards the close of 2023, provided Kenyans with optimism regarding oil prices just a fortnight before the monthly fuel assessment.
In its December 29, 2023 Review, CBK observed a decrease in global fuel prices.
Commenting on worldwide patterns, CBK observed that decreased tensions in the Middle East and North Africa had contributed to the decrease in global oil prices.
“International oil prices declined during the week ending December 28, as the Red Sea shipping disruptions eased,” CBK noted in its review.
“Murban oil prices declined to USD 79.55 per barrel on December 28 compared to USD 80.05 per barrel on December 22.”
The Energy and Petroleum Regulatory Authority (EPRA) is set to unveil fresh fuel costs on January 14, 2024.
In the assessment dated December 14, 2023, EPRA declared a drop in fuel costs, indicating a Ksh5 decrease for petrol, Ksh2 for diesel, and Ksh4.01 for kerosene. Consequently, motorists in Nairobi can now purchase petrol at Ksh212.36 per liter, diesel at Ksh201.47, and kerosene at Ksh199.05.
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Nevertheless, the currency conversion rate utilized by EPRA for determining fuel prices was greater than the rate provided by the CBK. As per the CBK, during November, the average dollar exchange stood at Ksh153, in contrast to the Ksh157.52 quoted by EPRA.
CBK’s lack of response to the exchange rate disparity on December 14 received varied reactions.
However, President William Ruto remained hopeful that the prices would decrease in the coming months after the modifications made by EPRA. However, he emphasized that as the leader of the government, he lacked the authority to control fuel prices as they were influenced by global factors.
“There are people who own oil there. They bring us the prices,” he remarked as to why the market was volatile. The only thing I am announcing to you is that those who bring that fuel have reduced the prices, and they will continue doing so.”
Kenyans are optimistic that CBK’s assessment will lead to a reduction in fuel costs at gas stations.
However, they are also preparing themselves for the resurgence of widespread protests, as Azimio leader Raila Odinga cautioned that he would spearhead demonstrations against the government if the high cost of living persists in January 2024.
Govt Offers Hope On Reduced Fuel Prices Days Before EPRA Review
