Raila advocates for a  landmark fuel reduction

Raila advocates for a landmark fuel reduction

Raila advocates for a landmark fuel reduction

In response to the decrease in the price of oil globally, former prime minister Raila Odinga has urged that the government lower fuel costs by Ksh50.Raila gave a speech on Saturday at an ODM recruitment event in Kajiado County. He said that the world oil price has reached an all-time low, which is why he is pushing for a historic cut.

He said that Kenyans could not afford the present pump prices imposed by the Energy and Petroleum Regulatory Authority (EPRA) and that this has caused the cost of life to skyrocket.A Ksh5 to Ksh10 decrease, according to Raila, would not be adequate given the conditions of the present oil market.

“We’ve heard that prices have decreased globally. The cost of petrol must decrease by Ksh45 to Ksh50 per litre this month,” he said.The current retail prices for a liter of Super Petrol and Diesel are Ksh217.36 and Ksh203.47, respectively. According to Raila’s proposal, the pump prices for Super Petrol and Diesel in December should be Ksh167.36 and Ksh153.47, respectively.

Conversely, a litre of kerosene, which is currently retailing for Ksh203.06, ought to be priced at Ksh153.06.The Central Bank of Kenya (CBK) had already acknowledged a decline in oil prices around the world.

As per CBK, the decline in oil demand in China and the US was the reason behind the decrease in fuel prices.Part of a CBK statement said, “Murban oil price declined to USD 75.18 (Ksh11,641) per barrel on December 7 from USD 85.51 (13,240) per barrel on November 30.”

On Thursday, December 14, EPRA is anticipated to release the fuel pricing for December.The decline in the global market is expected to result in a potential price reduction. However, the decline might not be as great as Raila had predicted given the dollar’s increasing strength versus the shilling and the 16% VAT.

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