Oil importers expect a reduction in fuel prices when the Energy Petroleum Regulatory Authority (EPRA) announces new charges on December 14.
Petroleum Outlets Association of Kenya (POAK) on Wednesday, December 7, revealed a substantial worldwide drop in fuel prices that will benefit Kenya.
“Oil Prices are slowly collapsing because of the impact of capping Russian crude oil,” POAK announced in a statement.
Apart from the capping of Russian crude oil, fuel prices also dropped because of weakened global demand, according to POAK.
Because of the aforementioned factors, Kenyans were expected to buy fuel at affordable prices over the festive season.
“We should expect a significant pump price drop by mid-December 2022 and January 2023,” POAK assured Kenyans.
The Group of Seven (G7) announced the capping of Russian fuel on December 5, noting that the nation can only sell its oil at market price.
The move was announced as part of economic sanctions on Russia imposed by G7 and European Union bloc.
Analysts argued that the cap will cause a worldwide drop in fuel prices as Russia is the world's second-largest oil exporter after Saudi Arabia.
Fuel has been trading at high prices in Kenya after President William Ruto dropped the fuel subsidy put in place by his predecessor, Uhuru Kenyatta.
On November 14, EPRA set the price of petrol at Ksh177.30, diesel at Ksh162.00 and kerosene at Ksh145.94 in Nairobi.
The authority, which had earlier warned Kenyans that fuel prices will continue to rise, will announce new charges on December 14.
