Fuel Supplier Ruduces Global Prices To Historic Level
Saudi Aramco, Kenya’s largest fuel supplier, reduced its clients’ February oil prices on Sunday to the lowest amount in the previous 27 months. The first regions to benefit from the decreased worldwide pricing were Asia, Europe, and the United States; Africa was not yet the focus.
Kenyan consumers who expect price changes soon are encouraged by Saudi Aramco’s recent action. Saudi Aramco distributes petroleum to Kenya on a six-month credit. The official selling price (OSP) for the crude oil variety Arab Light to Asia was reduced by Ksh 317 ($2) per barrel in February, the business said in a statement.
Crude oil prices dropped by 4% as a result of the price reductions implemented on Monday. in the US.Refineries said that Saudi Arabia’s oil exports are more expensive than those of other Gulf nations, which led to a decline in crude oil prices, according to reports from Reuters.
“Saudi crude is still relatively more expensive compared to other regional crude. But we are happy enough to see such prices, making it much more affordable for us,” said a trader with a North Asian refinery.Further reports indicated that Aramco was pushed to cut global prices as it struggles to maintain its significant share in the market, while at the same time limiting the amount of oil produced to raise prices.
As of right now, the agreement that Kenya and Saudi Aramco inked in 2023 to provide the nation with crude oil is anticipated to endure until December 2024, as the government extended it in September of last year.In March 2023, Kenya and Saudi Aramco inked a collaboration agreement that enabled the nation to purchase fuel on credit. Kenya was struggling with a declining shilling, thus the contract was signed in an attempt to lower demand for the dollars.
Globally, oil prices have been declining over the past few weeks. In Kenya, the Energy and Products Regulatory Authority last reviewed fuel prices on December 14, 2023.EPRA lowered the price of fuel by Ksh5 per litre for Super Petrol, Ksh2 for Diesel, and Ksh4 for Kerosene.The agency will release new rates on January 14; the previous prices were revealed on December 14 and were Ksh212.36 for gasoline, Ksh201.47 for diesel, and Ksh199.05 for kerosene per litre.