International oil prices have declined sharply ahead of next week's fuel price review by the Energy and Petroleum Regulatory Authority (EPRA), raising expectations that Kenyan motorists could benefit if the trend is reflected in local pump prices.

🇰🇪 Breaking It Down

The latest Central Bank of Kenya (CBK) Weekly Bulletin shows that Murban crude oil prices dropped to Ksh9,384.97 (US$72.54) per barrel as of August 6, down from Ksh10,120.54 (US$78.24) a week earlier.

The decline comes just days before EPRA announces the next monthly fuel prices, with Kenyans closely watching global oil markets following months of volatility driven by geopolitical tensions in the Middle East.

“Commodity prices recorded mixed movements, with Murban crude oil prices declining to USD 72.54 per barrel on August 6, from USD 78.24 per barrel on July 30, amid heightened Middle East tensions, while spot gold prices increased to USD 4,240.41 per ounce over the same period from USD 4,102.40 per ounce,” CBK said.

📌 What You Need to Know

According to the CBK, commodity prices recorded mixed movements during the week, with crude oil falling while gold prices continued to rise, reflecting heightened uncertainty in international markets.

The bulletin attributed the drop in crude prices to global market movements even as inflation risks remained elevated in advanced economies amid renewed tensions around the Strait of Hormuz, which remains effectively closed.

The latest development follows EPRA's decision last month to retain fuel prices for the period between July 15 and August 14, offering motorists temporary relief despite fluctuations in global markets.

Under the current prices, a litre of super petrol retails at Ksh214.03 in Nairobi, diesel at Ksh222.86 and kerosene at Ksh191.38.

At the time, EPRA said the government had maintained the pump prices through continued intervention to cushion consumers from global price shocks .

The regulator also disclosed that the government extended the 8 per cent VAT on petroleum products for another three months to October 2026 and utilised Ksh945 million from the Petroleum Development Levy (PDL) Fund to stabilise fuel prices.

📰 Source: Kenyans.co.ke