Central Bank of Kenya (CBK) has announced a drop in global oil prices ahead of the Energy and Petroleum Regulatory Authority’s (EPRA) fuel review next week.
Through its weekly bulletin published on Friday, February 7, the central bank revealed that international oil prices declined, with Murban oil falling to Ksh9,916 per barrel on February 6 from Ksh10,131 per barrel on January 30.
It was noted that oil prices on the international front dropped following the oil exporters resuming their usual production of more crude oil for importing countries.
However, in Kenya the price set in the G-to-G deal is often based on a fixed premium above the prevailing global oil price, meaning fluctuations in the international market do not directly impact the cost of oil imports under the arrangement.
The country pays a premium of around $90 (about Ksh11,610 in the current exchange rates) per barrel for petrol and $88 (about Ksh11,320 in the current exchange rates) per barrel for diesel, which is significantly higher than the global market price.
Meanwhile, according to the central bank, inflation concerns also remained stable during the week ending February 6.
Despite the rise in inflation rates in some European countries, in January this year compared to December 2024, the core inflation rate remained unchanged at 2.7 per cent.
Additionally, the Kenya shilling also remained stable against major international and regional currencies during the week ending February 6. Data from the central bank revealed that the local currency exchanged at Ksh129.19 per US dollar on February 6, compared to Ksh129.25 per US dollar on January 30, 2025.
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