The Central Bank of Kenya (CBK) has revealed that global oil prices have risen ahead of the Energy and Petroleum Regulatory Authority (EPRA) October-November review.
In its weekly Bulletin on Friday, October 11, CBK said international oil prices increased during the week ending October 9, reflecting a high demand for global oil.
According to the bulletin, the rise of global oil prices was mainly driven by the escalation in the tensions in the Middle East as a result of geopolitical conflicts.
“International oil prices increased during the week ending October 9, mainly driven by geopolitical tensions in the Middle East,” CBK stated.
“The price of Murban oil increased to USD 78.62 on October 9, from USD 76.54 on October 3.”
Global Oil Prices Continue to Rise
Concerns about inflation have continued to ease in advanced economies.
The US headline inflation declined from 2.5 percent in August to 2.4 percent in September, mainly on account of lower energy prices.
Meanwhile, the US dollar index strengthened by 0.9 percent against a basket of major currencies during the week ending October 9.
In the week ending October 3, the price of Murban oil increased to USD 76.54 from USD 72.64 on September 26.
Also Read: Global Oil Prices Rise Again as Kenyan Shilling Remains Stable
EPRA Fuel Prices for Last Two Cycles
In the September pricing cycle, EPRA announced that the maximum allowable pump prices for Super Petrol and Diesel would remain unchanged, while the price of Kerosene decreased by Ksh 3.43 per liter.
The maximum retail prices for Super Petrol, Diesel, and Kerosene were capped at Ksh 188.84, Ksh 171.60, and Ksh 158.32 per liter, respectively in the cycle.
Similarly, in the August cycle, EPRA maintained the prices for Super Petrol, Diesel, and Kerosene for the period between August 15 and September 14, 2024.
According to the report released on August 14, the prices in Nairobi stood at Ksh 188.84 for Super Petrol, Ksh 171.60 for Diesel, and Ksh 161.75 for Kerosene per liter.
Kenya Shilling Stabilizing
At the same time, the Kenya Shilling remained stable against major international and regional currencies during the week ending October 9.
Kenya’s foreign exchange reserves rose for the seventh straight week to hit a near two-year high of 8.299 billion U.S. dollars.
Also Read: EXPOSED: How Kenya Lost Over Ksh 6 billion in Edible Oil Scandal
Inflation Rate
Overall inflation has declined further and was expected to remain below the midpoint of the target range in the near term.
This has been supported by stable food inflation attributed to improved supply from the ongoing harvests, a stable exchange rate, and lower fuel inflation.
Additionally, the non-food non-fuel (NFNF) inflation has moderated and is expected to remain stable.
Central banks in the major economies have continued to lower interest rates in response to easing inflationary pressures, with expectations of further reductions in the coming months.
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