Fuel costs per liter will be reduced by Sh7.
In a surprising development, the government has announced a reduction in fuel prices, despite the ongoing increase in global oil prices.
The Energy and Petroleum Regulatory Authority (EPRA) has slashed the price per liter of petrol by Sh7.21, diesel by Sh5.09, and kerosene by Sh4.49.
This decision diverges from the prevailing trend of rising oil prices, as major oil-producing nations have agreed to extend production cuts, typically resulting in higher prices.
However, Kenya’s unique situation points to two primary factors contributing to the decrease:
- Favorable Pricing in Government Oil Agreements: According to an EPRA insider, the price reduction is linked to fair pricing arrangements in the current government-to-government oil contracts with Gulf companies.
- Strengthening Kenyan Shilling: The insider also noted a significant strengthening of the Kenyan shilling, appreciating by nearly 30 units against the US dollar since the beginning of last month. This appreciation renders oil imports more affordable.
Earlier, President William Ruto had hinted at relief at the pumps during his visit to the South Rift region. He assured Kericho residents of his efforts to revitalize the economy.
The President expressed optimism about several economic indicators, including the strengthening of the Kenyan shilling against the US dollar.
“I asked you to give me a little chance to uplift this economy. It had plummeted into the trench. Now, I’ve pulled it out of the trench. You can see how the dollar is gradually stabilizing. Today, you will be informed that fuel prices are easing up because we want to ensure Kenya moves forward without the burden and risks of debt. We must tread carefully as a nation,” Ruto emphasized.
