Global crude oil prices fell more than 12 percent this week, prompting expectations of possible relief at Kenyan fuel pumps in the coming weeks. The decline followed a preliminary ceasefire agreement between the United States and Iran. Kenya imports most of its petroleum and remains sensitive to movements in international markets.
Murban crude oil prices dropped to USD 74.41 per barrel from USD 84.60 a week earlier, according to the Central Bank of Kenya weekly bulletin. The fall of Ksh 1,319 per barrel came after tensions in the Middle East eased and Iran reopened the Strait of Hormuz.
Energy Cabinet Secretary Opiyo Wandayi has noted that local pump prices do not adjust immediately to global changes. Fuel discharged in any month is priced using the previous month’s benchmark rates, creating a built-in lag.
The full effect of the latest decline is therefore expected to appear in the August review by the Energy and Petroleum Regulatory Authority. Earlier relief remains possible if the government and EPRA decide to pass on the lower costs sooner.
