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.