Double Win For Kenyans In Fuel Development

Double Win For Kenyans In Fuel Development

Double Win For Kenyans In Fuel Development

The Central Bank of Kenya (CBK) has highlighted encouraging trends in the petroleum industry, allaying Kenyans’ fears of a possible increase in pump prices due to market volatility in the Middle East.Key indications that will influence the future for the economy include the dollar’s supremacy and the price of oil globally, according to CBK’s weekly report on economic analysis.

For example, CBK noted that the planned truce between Israel and Hamas was the reason behind the week-long decline in world oil prices.The two were at odds, which put the world’s oil production and exports at danger.

Notably, the International Monetary Fund (IMF) had expressed concern that the conflict would extend to the Middle East which is a major oil exporter. “International oil prices declined during the week ending February 1, largely attributed to a ceasefire proposal that could put an end to the geopolitical tension between Israel and Hamas.

“Murban oil price declined to USD80.47 per barrel on February 1 from USD80.72 per barrel on January 25,” according to a portion of the report.However, it was stated that the dollar has lost strength compared to the majority of other currencies, including the shilling.

“It exchanged at Ksh160.67 per US dollar on February 1, compared to Ksh160.80 per US dollar on January 25,” according to CBK.The cost of importation is anticipated to decrease somewhat because gasoline importers pay in dollars for the goods.

Kenyans may thus benefit from a further decrease in fuel prices in the upcoming weeks and months as a result of the decline in global prices and dollar supremacy. On February 14, the Energy and Petroleum Regulatory Authority (EPRA) is anticipated to examine pump prices.In Nairobi, Super Petrol is currently retailing for Ksh207.36, Diesel for Ksh196.47, and Kerosene for Ksh194.23.