by Lisa Murimi
Kenyan motorists could see relief at the pump this month following a notable drop in global oil prices. The decline, reported in the Central Bank of Kenya’s (CBK) weekly bulletin, comes just days before the Energy and Petroleum Regulatory Authority (EPRA) is set to announce its mid-August fuel price review.
As of August 7, the price of Murban crude oil had fallen to Ksh 8,871 ($68.25) per barrel, down from Ksh 9,550 ($73.52) recorded on July 31. Analysts attribute the drop to a shift in global market sentiment and an anticipated boost in supply.
The Organization of the Petroleum Exporting Countries (OPEC) recently confirmed plans to increase output by 547,000 barrels per day from September, a move expected to ease global supply constraints and reduce upward price pressure.
However, volatility remains. Concerns over new U.S. tariffs and their potential to slow global economic growth have fueled fears of weaker oil demand, which in turn has also contributed to the price drop.
Domestically, the Kenyan shilling maintained stability against the U.S. dollar at an average of Ksh 129.24 during the week ending August 7 — a critical factor for a net oil importer like Kenya, where exchange rate fluctuations directly influence fuel costs.
CBK data showed foreign exchange reserves at $10.89 billion, equivalent to 4.8 months of import cover, comfortably above the statutory minimum.
The anticipated EPRA review comes after sharp increases in July, when Super Petrol rose by Ksh 8.99 per litre, Diesel by Ksh 8.67, and Kerosene by Ksh 9.65.
Energy Cabinet Secretary Opiyo Wandayi has assured Kenyans the July hike was temporary, predicting prices would ease in the coming months.
EPRA’s next announcement on August 15 will confirm whether global price shifts finally translate to lower pump costs for Kenyan households and businesses.
