The drop in fuel prices in Kenya, attributed to the shilling’s rally against the dollar, provides significant relief for consumers. Despite a global increase in crude oil prices, the exchange rate improvement led to pump prices decreasing by up to Sh10 per litre. This marks the fifth consecutive month of price drops, offering timely relief to consumers amid economic challenges and taxation.
The strengthening of the shilling against the dollar played a crucial role in the price reduction, offsetting the impact of rising global crude prices. The Energy and Petroleum Regulatory Authority (EPRA) noted the role of currency exchange rates in influencing fuel prices, with the new prices effective until May 14. This adjustment is expected to ease inflation and improve consumer spending power.
While Kenyans benefit from lower fuel prices, potential geopolitical tensions and oil supply cuts could lead to future price increases. Developments such as the Israel-Hamas conflict and anticipated oil supply cuts by Mexico may impact global oil prices, affecting pump prices in Kenya. Despite recent relief, consumers should remain vigilant regarding potential future price fluctuations.
