Relief for Kenyans As Fuel Prices Set to Drop
According to a statement issued by the Energy Petroleum Regulatory Authority (EPRA), Kenyans will breathe a sigh of relief once oil prices begin to fall in mid-December 2022.
According to the Petroleum Outlets Association of Kenya (POAK), the reduction of oil prices will not only be witnessed in Kenya but also in other parts of the world.
“Oil Prices are slowly collapsing because of the impact of capping Russian crude oil,” POAK stated.
Apart from the Russian crude oil price cap, fuel prices have fallen due to weak global demand, according to POAK. Because of the aforementioned factors, Kenyans were expected to purchase fuel at reasonable prices during the holiday season.
“We should expect a significant pump price drop by mid-December 2022 and January 2023,” POAK added.
The move was announced as part of the G7 and European Union bloc's economic sanctions against Russia. Analysts believe the cap will cause a global drop in fuel prices because Russia is the world's second-largest oil exporter after Saudi Arabia.
This comes barely a month after the EPRA rolled out new fuel prices after they were reduced by Kshs. 1. A litre of petrol currently retails at Sh177.30 in Nairobi while a litre of diesel retails at Sh162.00.
According to the energy regulator, the price of diesel had been cross-subsidized with that of super petrol. Cross-subsidization occurs when a marketer charges a higher price to one group of customers in order to subsidize lower prices for another.
Diesel prices fell by 2.33 percent, from USD884.46 per cubic metre to USD863.81 per cubic metre, while kerosene prices fell by 9.08 percent, from USD883.22 per cubic metre to USD803.06 per cubic metre.