Relief at the Pump: Fuel Prices to Go Down

Kenyans can heave a sigh of relief as they anticipate a reduction in fuel prices in the upcoming monthly price review by the Energy and Petroleum Regulatory Authority (Epra). The new prices will be made public on Friday, October 14.

The prices of Super Petrol, Diesel and Kerosene are all expected to decline. The anticipated price drop is due to a decline in the cost of imported refined fuel, used to determine prices in the monthly review.

The price reportedly dropped by 10 percent from $117.53 (Ksh14,145) per barrel to $105.96 (Ksh12,810).

High fuel prices have been a major burden for many Kenyans as the record-high prices partly drove increases in prices of key commodities including basic food items, eroding their purchasing power. Inflation hit a 9.2 percent in September, the highest level in five years.

The upcoming price review comes even as the President William Ruto-led administration continues the removal of the subsidy on diesel and kerosene. The subsidy on super petrol was fully removed during the last price review, on September 14.

Ruto has spoken out against the fuel subsidy, maintaining that it is not sustainable. The International Monetary Fund (IMF) also wanted Kenya to drop the subsidy as part of conditions for the economic support program.

The landing cost of imported fuel has an outsized influence on the overall price of fuel as determined by Epra. Other factors include pipeline and storage expenses as well as the dollar exchange rate.

Global fuel prices have been on the decline in recent months. This has been tied to lessened economic activity in China, where  energy use has fallen on frequent lockdowns in major cities and regions.

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