By Judith Gicobi
An important player in the energy industry, the Petroleum Outlet Association of Kenya, has signaled that the next price cycle will likely see a decline in fuel prices.
The Organization of Petroleum Exporting Countries (OPEC) basket pricing will begin operations in late September, according to Martin Chomba, Chair of POAK, who was speaking to the media on September 21.
“If you look at this and study the world market of prices the crude that we consume, prices have started plummeting. We have come from the highs of about 120 dollars barrel to the current 80 something dollars per barrel,” Chomba stated.
He added that though pump prices are falling globally, Kenyans will have to wait until the start of the November–December cycle to start breathing a sigh of relief about fuel prices.
Following a review by the Energy and Petroleum Regulatory Authority (EPRA), Kenyans are currently dealing with rising living expenses that are made worse by an increase in fuel prices.
The country’s Matatu operators increased fares as a result of the high cost of fuel, forcing commuters to make larger financial sacrifices.
Additionally, Dr. Patrick Njoroge, Governor of the Central Bank of Kenya (CBK) during the induction of MPs, predicted that even if President William Ruto ended the subsidy, fuel prices would fall by December.
He stated that the prices decrease will be as a result of the return to normalcy being felt in the nations that supply oil products.
He continued by saying that while the regulator will carry out its duties by making an effort to control inflation, a better long-term answer will become apparent after fuel prices fall.
The Governor concurred with President William Ruto that subsidies hurt the economy and could have an impact on inflation in the nation.