Global oil prices edged lower amid prospects of cooling geopolitical tensions in the Middle East coupled with slowing demand from China – World’s top oil importer.
- Kenya’s supplier UAE Murban declined 1.8% from Tuesday’s close to trade at US$74.29 per barrel while the global benchmark Brent Crude declined by 2.0% to trade at US$74.50.
- Additionally, WTI eased 2.2% on Wednesday, trading at US$70.18 per barrel, all trading fairly below the US$80 per barrel mark.
- In the US, oil inventories rose by 1.6 million barrels last week above expectations, putting pressure on oil prices on potential oversupply in the US market.
US Secretary of State Anthony Blinken has held discussions with Israeli leaders over the ongoing conflict with no clear concession reached.
The Chinese government increased the 2025 crude oil import quota for private refiners by 6% year-on-year after keeping it unchanged for 4 consecutive years. China’s oil demand is however expected to remain weakened following the surging uptake of electric vehicles in the country.
The losses come after a series of gains, clawing back to October highs on mounting concerns about Israel’s retaliation to Iran’s missile attack earlier. However, Israel reassured not striking Iran’s nuclear and energy facilities when it retaliates, cooling jitters in the oil market.
Kenya’s Fuel Prices
Murban Oil, Kenya’s supplier, has declined by 3.5% since January 2024.
Kenya’s fuel prices trended downwards in the year, with landed costs decreasing steadily over the months.
For instance, landed costs of Super Petrol for the last three cycles have seen declines from KSh93.01 per litre in August to KSh83.02 per litre in October. For Diesel, landed costs decreased from KSh90.98 in August to KSh83.08 in October.
The strengthening shilling against the greenback coupled with the lower import costs underpin the gradual price reductions by the Energy & Petroleum Regulatory Authority (EPRA).
Despite the relief in global oil prices, taxes have weighed on the pump prices presented to consumers, with Kenyans still feeling the heat. The High court had earlier reversed the Road maintenance levy to KSh18 from the current KSh25, which EPRA has turned a blind eye to.
In the latest fuel prices review, prices dropped to two – year lows – Super petrol is retailing at KSh185.7 per litre, Diesel at KSh163.4 per litre and Kerosene at KSh155.1 per litre.
Inflation has slowed down in the country to target levels, partly owing to the decrease in energy and fuel prices.
