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Motorists in Kenya can breathe a sigh of relief as the Energy and Petroleum Regulatory Authority (EPRA) has announced a reduction in fuel prices for the March/April 2024 cycle. This welcome news comes after a period of rising fuel costs.

The price of Super Petrol has seen the biggest decrease, dropping by Ksh 7.21 per litre. Diesel prices have also been reduced, with a decrease of Ksh 5.09 per litre. Kerosene prices have seen a slightly lower reduction of Ksh 4.49 per litre.

The recent fuel price reduction announced by EPRA is expected to have a positive ripple effect across Kenya’s economy, impacting both transportation costs and inflation.

Kenyan motorists can expect to see a decrease in their fuel expenses when filling up their vehicles. This translates to potential savings on commuting costs, personal travel, and everyday errands.

For businesses that rely heavily on transportation for deliveries, logistics, and operations, lower fuel prices could lead to significant cost reductions. 

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This could benefit various sectors, such as public transportation, freight companies, and agricultural produce distribution.

The downward pressure on transportation costs might lead to a slowdown in the overall inflation rate. This could provide some relief to Kenyan households struggling with rising living expenses.

As the cost of necessities like transportation eases, consumers might have more disposable income to spend on other goods and services. 

This could potentially stimulate economic activity. The official announcement did not explain the significant decline, but an EPRA insider connected it to fair pricing by Gulf companies in the current government-to-government oil arrangement.

Additionally, he blamed the shift on the shilling’s nearly 30-unit increase versus the US dollar at the beginning of the month. 

Reduced crude oil prices were another element at work; according to the data Epra used to tabulate the pump prices, they fell to an average of $77.68 (Sh10,8775) per barrel in February from $83.32 (Sh11,665) per barrel in January. 

Kenyans had been urged by President William Ruto on Thursday to anticipate decreased fuel prices. 

The impact of fuel price reduction on public transport fares is likely to be mixed. While there’s a potential for lower fares, the actual outcome will depend on several factors, including competition, government regulations, and the individual strategies of transport operators. 

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However, it’s undeniable that a fuel price reduction will improve the financial health of the public transport industry, potentially leading to increased investment and improved services in the long run.

Consumers and businesses are encouraged to monitor fuel price trends to make informed decisions. 

By monitoring EPRA’s updates and staying informed about global oil markets, Kenyan consumers and businesses can adjust their behavior and financial plans accordingly, ensuring they are prepared for any future fluctuations that might impact the Kenyan economy.

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