The Energy Petroleum and Regulatory Authority (EPRA) is set to review fuel prices in the wake of increased global inflation being experienced across the world hitting even the world’s largest economies.
The review comes as crude oil prices drop globally but motorists might have to continue buying costly fuel till mid-August, before the drop is applied, industry players have highlighted.
According to the latest Central Bank of Kenya (CBK) weekly bulletin, international oil prices declined during the week ending July 7, after the OPEC+ agreed to increase monthly overall production.
“Murban oil prices dropped to USD 105.4 per barrel on July 7, compared to USD 118.74 per barrel on June 30,” CBK noted.
In March, crude oil hit a 13-year high of USD130 in March amid increased demand which did not match supply.
The increase in global oil prices has seen the country’s pump prices steadily increase since the beginning of the year and are set to soar with the planned retraction of a fuel subsidy.
Since January, the prices of petrol and diesel have risen by over 22 per cent and are currently at a record high, even with the fuel subsidy that has been catering for Sh30 per litre of petrol.
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The National Treasury, however, said last month that starting July, it will gradually withdraw the subsidy which could mean costlier fuel.
Currently, in Nairobi, super petrol is retailing at Sh159.12 while diesel is Sh140, and kerosene is retailing at Sh127.94. Higher pump prices will make it worse for Kenyans who are already grappling with the high cost of living.
SOURCES: Capital business
