Kenya’s Major Fuel Supplier ARAMCO Reduces Global Prices To Historic Level In Last 27 Months
Kenya’s primary oil provider, Saudi Aramco, reduced oil prices for its customers in February to the lowest point seen in the past 27 months.
Asia, Europe, and the United States were among the initial recipients of reduced worldwide prices, while Africa has not yet been included.
The recent action taken by Saudi Aramco, providing fuel to Kenya with a six-month credit, has ignited optimism among Kenyan consumers who are expecting possible price fluctuations soon.
As per the company’s announcement, the February official selling price (OSP) for Arab Light crude oil sold to Asia decreased by Ksh 317 ($2) per barrel.
Due to the reduction in prices announced on Monday, crude oil prices in the United States fell by 4 percent.
Refineries contended, as per Reuters reports, that the decrease in crude oil prices stemmed from their assertion that Saudi Arabia’s oil exports are pricier compared to those of other Gulf nations.
“Saudi crude is still relatively more expensive compared to other regional crude. But we are happy enough to see such prices, making it much more affordable for us,” said a trader with a North Asian refinery.
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Additional information suggested that Aramco was compelled to reduce worldwide prices in its efforts to preserve its substantial market share. Simultaneously, it aimed to restrict oil production to drive prices upward.
At present, the agreement established between Kenya and Saudi Aramco in 2023 for providing the nation with crude oil is anticipated to continue until December 2024 following a contract extension signed by the government in September of the previous year.
In March 2023, Kenya and Saudi Aramco entered into an agreement enabling the nation to make fuel purchases using credit. This partnership aimed to alleviate the pressure on Kenya’s declining currency, the shilling, by minimizing the need for dollars due to reduced demand.
In recent weeks, there has been a global decline in oil prices, and the Energy and Products Regulatory Authority in Kenya conducted its most recent fuel price review on December 14, 2023.
EPRA decreased Super Petrol prices by Ksh5 per liter, with reductions of Ksh2 for Diesel and Ksh4 for Kerosene.
The agency is set to reveal updated prices on January 14th, which will feature rates of Ksh212.36 for petrol, Ksh201.47 for diesel, and Ksh199.05 for kerosene per liter. These figures were initially introduced on December 14th.
Kenya’s Major Fuel Supplier ARAMCO Reduces Global Prices To Historic Level In Last 27 Months
