Fuel prices are anticipated to drop for the first time in almost a year following a sharp decrease in the price of imported refined fuel. 

According to a local publication the price of imported refined fuel, which will be used to set prices for the monthly cycle beginning on Friday October 14 midnight,  has decreased by 10% from $117.53 per barrel to $105.96. 

The decrease in the price of refined fuel has caused import prices for super, diesel, and kerosene to drop significantly, which has geared up the way for a decrease in pump prices and a respite for consumers struggling with an increase in the cost of living.

The Energy and Petroleum Regulatory Authority (Epra) bases its pump price calculations primarily on the average landed costs of imported oil. Other factors include pipeline and storage costs, shilling to dollar exchange rates, and oil marketer margins.

Currently, a litre of petrol costs Sh179.30 while diesel costs Sh165 and kerosene costs Sh147.94.

This will be the first time fuel prices have decreased while the state continues to remove diesel and kerosene subsidies in part. The subsidy was completely eliminated on September 14.

In the past few months, the global price of refined fuel has experienced a sustained decline due to a fall in demand in China as a result of new restrictions imposed to prevent the spread of the Coronavirus.

A group of 23 oil-exporting countries, commonly known as Opec, reached an agreement last week to cut production by two million barrels per day, a move intended to push prices per barrel back to $100 per barrel for the first time since July.

The cartel, which consists of 13 members of the Organization of the Petroleum Exporting Countries (Opec) and allies such as Russia, stated that the decision was made to stabilize prices.

By kdrtv

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