Fuel prices in Kenya have witnessed the most substantial decline since May 2020, offering relief to consumers grappling with the high cost of living. Effective midnight, pump prices have plummeted by up to Ksh7 per litre, marking the largest month-on-month drop in recent years.
Notably, the price of super petrol has dipped below the Ksh200 mark in the capital city of Nairobi for the first time since August. A litre of super petrol will now retail at Ksh199.15 after a substantial drop of Ksh7.21, while diesel will be priced at Ksh190.38 per litre, representing a reduction of Ksh5.09. Kerosene prices will also see a decline, albeit more modestly, dropping by Ksh4.49 per litre to retail at Ksh188.74 in Nairobi.
These price cuts, effective until April 14, are poised to alleviate the burden on consumers and contribute to efforts aimed at curbing the rising cost of living in Kenya. The last time fuel prices experienced such a significant decline was in May 2020, underscoring the magnitude of the current reduction.
According to Daniel Kiptoo, Director General of the Energy and Petroleum Regulatory Authority (EPRA), the price adjustments reflect the global trend of falling refined fuel prices amidst reduced demand in major economies. The decline is mirrored by a decrease in the price of murban crude, which set the basis for the new fuel prices.
The impact of these price drops extends beyond consumer relief, potentially contributing to lower inflation rates, which stood at 6.3 percent last month compared to 6.9 percent in January. The strengthening of the Kenyan shilling against the dollar and the global decline in refined fuel prices have culminated in the most significant month-on-month price cuts in over three years.
As Kenya’s economy heavily relies on diesel, the reduction in fuel prices is poised to benefit various sectors, including manufacturing and services, as the cost of goods and services is influenced by prevailing fuel prices. Overall, the substantial decrease in fuel prices signals a positive development for consumers and the economy at large, offering a much-needed reprieve amidst ongoing economic challenges.
