Global oil prices have hiked weeks after the Energy and Petroleum Regulatory Authority (EPRA) reduced fuel prices in its December 2024 – January 2025 review, a report by the Central Bank of Kenya has revealed.
In its weekly bulletin released on Friday, December 27, CBK said international oil prices increased during the week ending December 24, reflecting a high demand for global oil.
According to the bulletin, the rise of global oil prices was mainly driven by optimism that China’s economic stimulus efforts will lead to a recovery in demand.
“International oil prices increased during the week ending December 24. The price of Murban oil increased to USD 74.19 on December 24, 2024, from USD 73.06 on December 19, supported by optimism that China’s economic stimulus efforts will lead to a recovery in demand,” CBK stated.
The announcement by CBK that global oil prices have risen comes after EPRA in its monthly review report released on Saturday, December 14, reduced prices of Super Petrol, Diesel, and Kerosene by Ksh4.37, Ksh3.00 and Ksh3.00 respectively.
EPRA Reduces Fuel Prices for December & January
In Nairobi, prices for Super Petrol, Diesel, and Kerosene were capped to retail at Ksh176.29, Ksh165.06, and Ksh148.39, respectively, up to January 14, 2025.
Meanwhile, in Mombasa, Super Petrol was capped to retail at Ksh173.05 per litre, Diesel at Ksh161.82 per litre, and Kerosene at Ksh145.15 per litre.
“In accordance with Section 101(y) of the Petroleum Act 2019 and Legal Notice No.192 of 2022, the Energy & Petroleum Regulatory Authority (EPRA) has calculated the maximum retail prices of petroleum products which will be in force from 15th December 2024 to 14th January 2025,” read the statement in part.
“In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel, and Kerosene decreased by Ksh4.37 per litre, Ksh3.00 per litre, and Ksh3.00 per litre, respectively.”
Also Read: EPRA Lists Top 10 Petroleum Companies in Kenya by Sales Volume & Market Share
On the other hand, the average landed cost of imported Super Petrol decreased by 4.46% from US$641.14 per cubic metre in October 2024 to US$612.53 per cubic metre in November 2024.
Diesel increased by 5.76% from US$608.61 per cubic metre to US$643.69 per cubic metre while Kerosene increased by 1.87% from US$648.15 per cubic metre to US$660.30 per cubic metre over the same period.
CBK on stabilization of the Kenyan Shilling
At the same time, the Central Bank has announced that the Kenya Shilling remained stable against major international and regional currencies during the week ending December 24.
The Kenyan currency exchanged at Ksh129.30 against the US dollar on December 24, compared to Ksh129.29 per US dollar on December 19.
Also Read: EPRA Reduces Fuel Prices for December & January
Inflation Rate
Inflation rates in the major economies, on the other hand, were volatile amid monetary policy easing.
Japan’s core inflation increased to 2.7 percent in November from 2.3 percent in October supporting expectations that the Bank of Japan would gradually raise rates.
The US dollar index on the other hand weakened by 0.2 percent against a basket of major currencies during the week ending December 24.
Additionally, the usable foreign exchange reserves remained adequate at US$9,201 million (4.7 months of import cover) as of December 24.
“This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” the CBK bulletin adds.
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