NAIROBI, Kenya — A recent report from the Central Bank of Kenya (CBK) has highlighted a significant decrease in international oil prices, which could lead to lower fuel prices in the country.
This comes just ahead of the Energy and Petroleum Regulatory Authority’s (EPRA) monthly fuel price review.
According to the CBK’s April 4 bulletin, international oil prices have fallen considerably, with Murban oil experiencing a drop of $3.04 (Sh399) per barrel.
Prices have dropped from $74.90 (Sh9,680) per barrel on March 27 to $71.86 (Sh9,287) per barrel on April 3.
This decline comes amid concerns about global demand, influenced by ongoing trade policy uncertainties and the decision by OPEC+ to increase production.
The global price drop is aligned with recent adjustments in forecasts from major financial institutions. Goldman Sachs has revised its 2025 oil price outlook, predicting a 5.5pc reduction for Brent crude and 4.3pc for West Texas Intermediate (WTI).
This could result in lower oil prices worldwide, including in Kenya, where oil imports play a major role in domestic pricing.
The Central Bank of Kenya (CBK) publishes a Weekly Bulletin, outlining recent monetary and financial developments. The Weekly CBK Bulletin for April 4, 2025, can be found at: centralbank.go.ke/uploads/weekly…
Impact on Fuel Prices and G-to-G Deal with Gulf Countries
In light of the global dip, Kenya’s new government-to-government (G-to-G) oil import deal with Gulf countries could offer further price reductions.
Under this agreement, Kenya will secure a tonne of diesel from Saudi Aramco, Abu Dhabi National Oil Company, and Emirates National Oil Company at $78 (Sh10,080.72). This represents an 11.3pc drop from the previous rate of $88 (Sh11,374).
Meanwhile, petrol prices are expected to decrease from $90 (Sh11,632) to $84 (Sh10,857).
The reduction in fuel costs under this agreement, along with declining global oil prices, signals that Kenyans could soon see a drop in fuel prices at the pump.
EPRA’s Fuel Price Review and Potential Impact on Consumers
Despite fuel prices holding steady in the last two months, with Super Petrol priced at Sh176.58, Diesel at Sh167.06, and Kerosene at Sh151.39 per litre, there is hope for price relief.
EPRA’s decision to maintain the prices after their March 13 review has been welcomed by consumers, but a further reduction based on the drop in global prices seems likely.
The upcoming review, scheduled to take place in mid-April, may bring relief to consumers who have been dealing with rising fuel costs.
The drop in global oil prices and the favorable G-to-G deal with Gulf suppliers make it an opportune moment for Kenyans to potentially see fuel price adjustments.
If the current trends continue, it seems likely that fuel prices will decrease in the coming months.
With the international price of oil on the decline and Kenya’s strategic agreements with Gulf nations, consumers may soon experience a long-awaited drop in the cost of fuel.
This shift could ease the financial burden on many Kenyans, as fuel prices significantly impact everyday costs, from transport to goods and services.
