The Central Bank of Kenya, in its Weekly Review, which coincided with the end of 2023, gave Kenyans hope in relation to oil prices two weeks before the monthly fuel review.
Through the Review dated December 29, 2023, CBK noted that international fuel prices were declining.
Remarking on the global trends, CBK noted that a relative calm in the Middle East and North Africa regions had played a part in reducing 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 expected to announce new fuel prices on January 14, 2024.
In its December 14, 2023 review, EPRA announced a reduction in fuel prices, with petrol decreasing by Ksh5, diesel by Ksh2, and kerosene by Ksh4.01. Motorists in Nairobi thus buy petrol at Ksh212.36, Ksh201.47 for diesel, and Ksh199.05 for Kerosene per litre.
However, the exchange rate used by EPRA to release the fuel prices was higher than that issued by the CBK. According to CBK, in November, the dollar traded at an average of Ksh153, contrary to Ksh157.52 cited by EPRA.
CBK did not address the disparity in the exchange rate, which elicited mixed reactions on December 14.
Nonetheless, President William Ruto was also optimistic that the prices would reduce in subsequent months following the adjustments by EPRA. He, nevertheless, clarified that as the Head of Government, he had no powers to dictate fuel prices since they were determined by international forces.
“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.”
With CBK’s review, Kenyans are hoping that this will translate to lower pump prices.
They, however, are also bracing for the return of mass protests as Azimio leader Raila Odinga warned that he would lead demonstrations against the government should the cost of living remain high in January 2024.
