CBK announced that the decline was attributed to improvemnt of monetary and fiscal policies around the world.
The Central Bank of Kenya (CBK) announced a decrease in global fuel prices with the monthly review of fuel prices across the country by the Energy and Petroleum Regulatory Authority (EPRA) set for Saturday, September 14.
In its weekly bulletin dated September 13, 2024, CBK announced that the decline was attributed to improvemnt of monetary and fiscal policies around the world.
“International oil prices declined marginally during the week ending September 12, reflecting a slowdown in global oil demand.
“The Murban oil price declined to USD 72.34 per barrel on September 12 from USD 72.99 per barrel on September 5,” the bulletin stated in part.
Mv Navig8 Martinez fuel tanker docks at the Kipevu Oil Terminal 2 at the port of Mombasa with Uganda’s petrol consignment on July 3, 2024. /NATION MEDIA GROUP
The Kenyan Shilling also strengthened slightly against the United States Dollar and remained stable against other major currencies globally.
It exchanged at Ksh129.18 per US dollar on September 12, compared to Ksh129.19 per US dollar on September 5. An easing inflation across major economies and a stronger Shilling could play a very crucial part in determining the fuel prices for the next month.
In the last monthly review, EPRA retained fuel prices for the period between Thursday, August 15 and Saturday, September 14. Nairobi motorists have been paying Ksh188.84 for Super Petrol, Ksh171.60 for Diesel and Ksh161.75 for Kerosene during that period.
EPRA on Sunday, July 14 announced that the prices of Super Petrol, Diesel and Kerosene all went down by Ksh1, Ksh1.50 and Ksh1.30, all per litre, respectively.Â
However, the small decrease by Ksh1 announced in month before was overshadowed by the lingering impact of recent tax hikes, leaving consumers questioning whether the changes would bring any real relief.
Moreover, Kenyans would thereaftrer realise that the government in stealthy circumstances increased the controversial road maintenance levy (RML) from Ksh18 in the June-July cycle to Ksh25, affecting both consumers of Super Petrol and Diesel.
This hike, combined with the lingering effects of the now-nullified Finance Act 2023, which had doubled the Value Added Tax (VAT) on fuel from 8 per to 16 per cent, has kept fuel prices high.
Four days ago, however, National Treasury Cabinet Secretary (CS) John Mbadi offered some hope to Kenyans regarding the VAT, proposing its reduction from 16 percent to 14 percent as part of the Ministry’s medium-term revenue strategy aimed at improving tax administration.
Treasury Cabinet nominee John Mbadi facing Parliament Appointments Committee on August 3, 2024. /PARLIAMENT KENYA
