Thursday, February 13, 2025
=

Global Oil Prices Fall a Week After Kenya’s Fuel Increase

The global oil prices reduced during the week ending January 23 after Kenya’s Energy and Petroleum Regulatory Authority (EPRA) increased the prices of fuel.

The Central Bank of Kenya (CBK) Weekly Bulletin for January 24, 2025, revealed that international oil prices reduced by $1.2 (Ksh 155.40) per barrel between 16th and 24th January.

CBK said there are calls by U.S President Donald Trump’s government for the Organization of the Petroleum Exporting Countries (OPEC) to lower prices.

“International oil prices declined, with Murban oil falling to USD 81.03 per barrel on January 23, down from USD 82.5 per barrel on January 16, 2025, amid calls by the new US administration for OPEC to lower prices,” CBK said.

EPRA Director General Daniel Kiptoo. PHOTO/Courtesy. Fuel Prices. Oil Prices
EPRA Director General Daniel Kiptoo. PHOTO/EPRA

EPRA Fuel Prices Increase Before Fall in Global Oil Prices 

On January 14, EPRA announced an increase of Ksh0.29 for Super Petrol, Ksh2.00 for Diesel, and Ksh3.00 for Kerosene.

This means that Super Petrol will retail at Ksh176.58, Diesel at Ksh167.06, and Kerosene at Ksh151.39 in Nairobi between January 14 and February 14.

“In the period under review, the maximum allowed petroleum pump prices for Super Petrol, Diesel and Kerosene increase by Ksh0.29, 2.00 and 3.00 respectively. In Nairobi, Super Petrol, Diesel and Kerosene will retail at Ksh176.58, 167.06 and 151.39 effective midnight,” EPRA said. 

EPRA explained that the prices are inclusive of the 16% Value Added Tax (VAT) in line with the provisions of the Finance Act 2023, the Tax Laws (Amendment) Act 2024 and the revised rates for excise duty adjusted for inflation as per Legal Notice No. 194 of 2020.

Exchange Rates & Foreign Exchange Reserves

The Kenya Shilling remained stable against major international and regional currencies during this period.

It exchanged at Ksh129.28 per US dollar on January 23, 2025, compared to Ksh129.54 per US dollar on January 16, 2025.

Additionally, the usable foreign exchange reserves remained adequate at $8,652 million (4.4 months of import cover).

“This meets the CBK’s statutory requirement to endeavour to maintain at least 4 months of import cover,” CBK said.


Also Read: Why Kenya Risks Compensating Gulf Firms in G2G Oil Deal


Money & Equity Market

Liquidity in the money market remained adequate during the week with commercial banks’ excess reserves standing at Ksh21.6 billion in relation to the 4.25 percent cash reserves requirement (CRR).

The average interbank rate was 11.29 percent on January 23 compared to 11.33 on January 16.

During the week, the average number of interbank deals declined to 38 from 55 the previous week, while the average value traded declined to Ksh24.3 billion from Ksh34.4 billion in the previous week.

At the Nairobi Securities Exchange, the NASI, NSE 25 and NSE 20 share price indices increased by 1.5 percent, 2.8 percent and 2.5 percent, respectively.

Besides, market capitalization, equity turnover and total shares increased by 1.5 percent, 15.6 percent and 17.1 percent, respectively.


Also Read: EXPOSED: How Kenya Lost Over Ksh 6 Billion in Edible Oil Scandal


Government Securities & Bond Market

The Treasury bill auction of January 23 received bids totaling Ksh32.8 billion against an advertised amount of Ksh24.0 billion, representing a performance of 136.7 percent.

However, interest rates on the 91-day, 182-day and 364-day Treasury bills declined.

Further, bond turnover in the domestic secondary market increased by 17.8 percent during the week.

In the international market, yields on Kenya’s Eurobonds on average increased by 15.8 basis points.

Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates

Fuel prices increased. Oil Prices
Kenya shilling exchange rates with international and local currencies 10th to 23rd January 2025. PHOTO/CBK.

Get real time update about this post categories directly on your device, subscribe now.

Edwin Hinda

Edwin Hinda is a versatile and creative journalist with a keen interest in politics, sports, education, international affairs, entertainment, and soft content. With a degree in Communication and Media Technology (Print Option) with IT from Maseno University, Edwin brings a well-rounded academic background to his work. He excels in conducting thorough interviews and in-depth research, ensuring that his stories are both informative and engaging. He can be reached at edwin.hinda@thekenyatimes.com

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *