Global oil prices have experienced a two-week consecutive drop ahead of the Energy and Petroleum Regulatory Authority (EPRA) review, set for Tuesday, May 14. The decline comes amidst diplomatic efforts to secure a cease-fire in Gaza, easing fears over the Israel-Palestine conflict’s impact on oil-exporting nations in the Middle East.
According to the Central Bank of Kenya (CBK) weekly report dated May 9, the drop in oil prices is also attributed to a balance in oil supply and demand, alongside increased geopolitical uncertainties. Murban oil prices fell from USD 88.74 per barrel on April 25 to USD 83.28 per barrel on May 8.
In terms of the exchange rate, the Kenyan shilling has stabilized and gained ground against the dollar, with the exchange rate at Ksh131.25 compared to Ksh133.20 the previous week.
The current trends suggest minimal movement in fuel prices for the upcoming announcement, following President William Ruto’s earlier indications of dropping oil prices due to government initiatives stabilizing the dollar. However, the government might consider a subsidy program to cushion Kenyans, especially in light of recent floods affecting households nationwide.
