Kenyan consumers could soon benefit from lower fuel costs after global oil prices declined sharply in the week ending June 18, 2026, according to the latest weekly market bulletin from the Central Bank of Kenya (CBK).
The CBK reported that inflationary pressures eased during the week as geopolitical tensions subsided, leading to a decline in global commodity prices, particularly crude oil.
According to the bulletin, Murban crude oil prices dropped to USD 74.41 (Ksh 9,633) per barrel during the week ending June 18, 2026, from USD 84.60 (10,953) per barrel recorded a week earlier.
Global Crude Oil Prices Fall by Over $10 After US-Iran Ceasefire Deal
The decline represents a drop of more than USD 10 (Ksh 1,300) per barrel over the past week.
While oil prices declined, spot gold prices edged up to USD 4,239.13 per ounce from USD 4,213.84 per ounce a week earlier. The increase was attributed to heightened volatility in the foreign exchange market.
“Commodity prices declined in the week ending June 18, 2026, largely reflecting easing geopolitical tensions after the U.S. and Iran signed the preliminary ceasefire deal,” the CBK said in the report.
“Murban crude oil prices declined to USD 74.41 per barrel from USD 84.60 per barrel a week earlier, while spot gold prices increased marginally to USD 4,239.13 per ounce from USD 4,213.84 per ounce, reflecting increased foreign exchange market volatility.”
Also Read: EPRA Announces Reduction of Petrol and Diesel Prices for June/July Cycle
Crude oil prices have dropped by over 25%, falling from a March high of approximately $100 (Ksh13,000) per barrel to around $70 per barrel (Ksh 9,170).
The drop in crude oil prices is likely to be closely watched in Kenya, where global oil costs play a significant role in determining local fuel prices.
Lower international oil prices can reduce import costs for oil marketers and potentially ease pressure on transport and energy expenses.
However, movements in local pump prices also depend on other factors, including exchange rate fluctuations, taxes, levies, and regulatory adjustments.
Also Read: CS Wandayi Confirms When Fuel Price Drop Will Take Effect After US-Iran Peace Deal
The latest developments come as households and businesses continue to monitor global market trends amid concerns over the cost of living and the impact of international commodity prices on the Kenyan economy.
EPRA Fuel Prices for June-July Cycle
The Energy and Petroleum Regulatory Authority (EPRA) reduced the prices of petrol and diesel in its monthly review for the period from June 15, 2026 to July 14, 2026.
In the changes announced on Sunday, June 14, pump prices for petrol were reduced by Ksh 0.22 per litre, while diesel prices went down by Ksh 10 per litre. The price of kerosene remained unchanged.
In Nairobi, petrol will retail at Ksh 214.03 per litre, diesel at Ksh 222.86, and kerosene at Ksh 191.38 starting June 15.
The authority said the new prices were in line with the April gazette notice that temporarily cut the Value Added Tax (VAT) on petroleum products from 16% to 13%, and subsequently down to 8%.
Shilling Holds Steady as Dollar Index Rises and Major Central Banks Maintain Rates
The central bank noted that easing inflationary pressures were also reflected in major central banks’ decisions to maintain their policy rates.
“The Federal Reserve Bank and the Bank of England retained their policy rate following easing geopolitical risks amid elevated second-round inflation pressures,” the bulletin stated.
The CBK further reported that the U.S. Dollar Index strengthened by 0.8 percent during the week, reflecting shifts in global financial markets.
The Kenya Shilling remained stable against major international and regional currencies during the week ending June 18, 2026.
It exchanged at Ksh 129.55 per U.S. dollar on June 18, compared to Ksh 129.48 on June 11
