Kenyans expect cheap fuel. FILE PHOTO | NMG
With the current slump in the price of crude oil in the
international market, Kenyans now expect to enjoy cheaper fuel,
electricity and cooking gas prices when the Energy and Petroleum
Regulatory Authority (EPRA) reviews prices later this month.
The
EPRA announces new pump prices every 14th day of the month, which takes
effect on the 15th, with costs based on the previous month’s crude
costs. Since Kenya stopped refining crude in 2013, there is usually a
time lag of at least a month between the placement of import orders and
delivery of the commodity at the Mombasa port, meaning local prices do
not immediately reflect global market trends.
The
coronavirus pandemic has put a strain on households’ budgets following
restrictions on movement with many workers having to stay home or accept
lower pay. Lower fuel prices will be a much welcome relief as this will
feed price review for other commodities since costs of energy and
transport have a significant weighting in the basket of goods and
services used to measure inflation in the country.
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