EPRA set to review fuel prices amid Russia Ukraine war

NAIROBI, Kenya March 14-The Energy Petroleum and Regulatory Authority (EPRA) is set to review fuel prices in the wake of the Russia-Ukraine war that has pushed crude oil prices to highs last seen in 2008.

Oil prices soared to a near 14-year high last week, though the commodity remains elevated around USD 110.

According to the latest Central Bank of Kenya (CBK) weekly bulletin, the ongoing Russia-Ukraine conflict has seen international oil prices remain volatile during the week ending March 10 reflecting demand and supply mismatch.

A litre of petrol currently retails at Sh129.72 in Nairobi, while diesel goes for Sh110.60 per litre. Kerosene, mostly used in low-income households retails at Sh103.54 per litre.

The fuel subsidy scheme  which is supported by billions of shillings raised from fuel consumers through the Petroleum Development Levy has kept pump prices unchanged for four months in a row.

The government has been implementing the stabilisation programme since April 2021 following a surge in global crude oil prices following increased demand.

The levy cushions consumers from volatility in fuel prices but the sharp rally in crude oil prices in recent months has depleted the fund, this could see government fail to cushion Kenyans in this month’s review.

Murban oil price declined to USD 117.24 per barrel on March 10 from USD 119.23 per barrel on March 3.

The current fuel being consumed in Kenya is based on the average crude oil prices of USD82.03 a barrel.